Nepra shows concern over Discos, K-Electric performance

Says inefficiency in transmission, distribution caused Rs35b losses| Less recovery of bills losses reach Rs76b

2018-08-30T01:50:54+05:00 Fawad Yousafzai

ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) has showed its concern over performance of X-Wapda distribution companies and K-Electric which have contributed losses of around Rs35 billion due to their inefficiency in transmission and distribution losses and Rs76 billion due to less recovery of bills during 2016-17.

In the Annual Performance Report (APR) for the year 2016-17, the Nepra has noted that in spite of persistent directives and monitoring by the regulator, Discos and K-Electric did not show any distinguishable performance in 2016-17 and continued in the businesses as usual especially in the areas of SAIFI, SAIDI, quality of supply (voltage & frequency), time frame for new connection, load shedding and consumer service complaints. Additionally, the provision of dubious data remains a major issue.

Nepra's APR for the year 2016-17, submitted by the distribution licensees, were reviewed on the basis of parameters namely, transmission and distribution losses, recovery, System Average Interruption Frequency Index (SAIFI), System Average Interruption Duration Index (SAIDI), time frame for new connection, load shedding, nominal voltage, consumer complaints, safety, and fault rate.

In the performance report Nepra has shown serious reservations over the authenticity of data regarding loadshedding being carried out by Discos and K-Electric in their service territories.

The data provided by Discos and K-Electric shows that Discos and K-Electric shed the load from 2 to 4.5 hours daily which cannot be true given the longer periods of loadshedding.

Further, it is a matter of concern that Discos and K-Electric are not following the order of loadshedding according to different categories of consumers as provided in PSDR 2005. Similarly, the issue of data correctness as reported in previous Performance Evaluation Reports (PERs), remained there.

Although, the Nepra has already initiated strict actions against such fake reporting by the distribution companies and is trying to bring them within the frame of compliance of Performance Standards based on facts.

According the Nepra performance report the T&D losses indicate that except IESCO, none of the Disco could meet the regulator's expectations. Particularly, Sepco has shown the worst performance among all Discos along with Pesco, Hesco and Qesco, said the APR.

During FY 2016-17, the Nepra continued monitoring activities including data verification and found that the data submitted by the distribution companies is significantly fudged.

Accordingly, the Nepra took serious actions and legal proceedings were initiated against all distribution companies except Mepco & Qesco.  As a result of that Lesco, Gepco, Hesco, Sepco and Fesco have been penalised and proceedings against Iesco and KE are still going on.

On the bases of data submitted by Discos and K-Electric for the year 2016-17, following major observations have been noted by the regulator.

Regarding T&D Losses & Recovery the regulator has noted with serious concern that during 2016-17, Discos and K-Electric contributed losses of around Rs35 billion due to their inefficiency in T&D losses and Rs76 billion due to less recovery of bills.

As far as recovery is concerned, Iesco and Lesco have achieved 100percent recovery targets. It is worth mentioning that Sepco has improved its recovery from 55.2 percent to 110.8 percent in 2016-17 as compared to 2015-16.

However keeping in view its previous trend, it creates a questions mark that how it has been achieved by Sepco. In this regard, Sepco has been inquired to submit the details of measures taken for achieving such high percentage of recovery.

Moreover, Gepco,Fesco, Mepco, and Hesco have also shown good performance in this regard and achieved more than 95percent recoveries.

Rest of the Discos are lagging behind the target of 100percent. The recovery by Qesco has declined from 71.6 percent to 43.5 percent in 2016-17

Regarding time Frame for New Connections the regulator noted that the data submitted by Discos does not reflect ground realities as Nepra team during visits of different Discos found that 100 to 200 connections per sub-division were pending since last six months. Whereas, the data shows that Iesco, Pesco, Sepco and Hesco have provided 100% percent connections within the time frame as prescribed in PSDR 2005.

Further, LESCO, MEPCO and K-Electric have submitted that they have also provided more than 95% of applied connections in 2016-17.

On Safety the regulator said that it is also a matter of fact that the number of fatal accidents for employees and general public have reduced to 147 in 2016-17 from 172 in 2015-16 due to the constant efforts of Nepra in form of implementation of safety standards as prescribed in PSDR 2005.

Due to the issue of data accuracy, this year also Nepra has only considered four parameters for the performance ranking of Discos and K-Electric i.e. T&D Losses, Recovery, Time Frame for New Connections and Safety.

It is worth mentioning that performance ranking is carried out based on the data submitted by the Discos & K-Electric and marks are awarded by considering the compliance level in respect of set standards and Nepra's targets.

Based on the results, IESCO has secured the top slot, followed by Gepco and then Lesco. Mepco's ranking fell to 4th position due to decline in losses and recovery.

Further, Fesco has gone two positions down as compared to previous year and has acquired 6th position as it failed to provide new connections within specified time frame to more than 34% of eligible consumers. K-Electric has improved to 5th position because of improvement in losses and recovery.

Similarly, Sepco has shown outstanding results from recovery point of view and jumped to 8th position from 10th in 2015-16.

Whereas Pesco has retained on same position as in 2015-16 i.e. 7th. Hesco and Qesco could not make significant improvement and have gone down to 9th and 10th positions due to decline in losses and recovery respectively.



View More News