Electricity authorities fail to collect YR 22.1 billion in bad debts

The General Electricity Authority has disclosed that their outstanding debts from customers has increased to YR22, 118,000,000 from January- September of this year, compared to YR 20, 609,000,000 during the same period last year. 

A report from the authority revealed that YR12, 151,000,000 in debt is distributed among household customers - amounting to 55 percent of overall debts, compared to YR10, 621,000,000 during the same period last year. The report went on to say that the debt from government institutions is YR8, 670,000,000, or 39 percent of the total debt, compared to YR 8, 818,000,000 last year. According to the report, the debt from major customers is YR1, 297,000,000, or 6 percent of total debts, compared to YR1, 173,000,000 last year.

The report estimated that the number of customers, whose debts range from YR 100.000-399.000 is 5.785, with a total overall debt of YR 942 million. It estimated that 437 customers have debts in excess of YR 400.000, and their total overall debt is YR 366 million.

The report said the largest share of the debt was reported in Sana’a, with YR4, 409,000,000 outstanding. This is followed by Aden, with YR 4, 18,000,000 outstanding, Hodiedah with a total debt of YR2, 564,000,000, Taiz with YR1, 359,000,000 in debt, Ibb with YR1, 76 000,000, the remainder of Sana’a governorate with YR1, 30,000,000 and finally Lahj with YR1, 10,000,000. 

The rest of the outstanding debts are distributed throughout other governorates. The debt of the coastal governate of Hadramout is YR708 million, Amran YR 382, Marib YR397 million, Yarim district in Ibb YR712 million, Dhamar YR 649 million, Abian YR 856, Haja YR 414 million, Dhalie YR 320 million and other areas total YR493 million.

The report described the overall increase in debts, considered a serious problem, saying the average liability period rose to 4 months, in addition to the increase of customers either unable or unwilling to pay their bills.
 
The report attributed the causes of the debt’s increase to the lack of effective follow-up of bill payments, overlapping customers’ sectors, lack of annual and monthly analysis of the debts and the lack of an effective system to track down and follow-up those in debt.

The increasing debt is becoming a major problem for the electricity authority, negatively affecting its performance and badly affecting their financial portfolio. 

The authority depends on the electricity law to cut-off customers who refuse to pay their debts for their use of electricity. The law, which is currently before parliament for approval may form special prosecution bodies to deal with delinquent customers.  

The law may also authorize employees of the Electricity Authority, appointed by the Minister of Electricity, the authority to perform arrests. However, this matter awaits the Minister of Justice’s approval. 

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