DISCOs incurring losses amounting to billions of rupees

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LAHORE: PEPCO held a detailed review of the performance of all Distribution Companies during the month of December 2017.  The progress of implementation of the development schemes under the Phase-I of the Sustainable Development Goals was satisfactory.

Despite a very large number of schemes in MEPCO and FESCO, both have achieved the targeted timelines. All DISCOs except PESCO, SEPCO and QESCO have achieved the targets for picture-based meter reading for the domestic and commercial consumers.

In the drive for acquiring mobile phone numbers of all consumers MEPCO, IESCO and FESCO were the top three DISCOs with more than 90 per cent consumer mobile numbers in their database. Performance of HESCO and SEPCO was not encouraging with less than 24 per cent consumer mobile numbers acquired till December 2017.  PESCO and QESCO were the worst since both could not acquire the mobile numbers of even 2 per cent of their total consumers.  The drive to obtain mobile numbers was started so that consumers could be sent real-time SMS regarding meter reading, the status of fault at their feeder etc.

FESCO was the best among all DISCOs regarding no delay in implementation of its billing schedule closely followed by MEPCO. PESCO and QESCO were the worst with maximum delays of 11 days and 7 days in one of their batches respectively.

In terms of accuracy of meter reading, FESCO and MEPCO were the best with mistakes of only 0.96 per cent and 5.94 per cent respectively; followed by GEPCO and HESCO.  Worst performers were PESCO and LESCO with mistakes as high as 29.42 per cent and 26.6 per cent respectively.

Performance of the DISCOs as far as Aggregate Technical and Commercial (ATC) losses are concerned is very serious and alarming.  Worst performers on the basis of financial loss calculated by PITC through ATC loss for the month of December 2017 were PESCO and QESCO among all 10 DISCOs.  It is estimated that PESCO under its CEO Shabbir Ahmed Gilani has incurred a loss of Rs 5.828 billion while QESCO under Rehmatullah Baloch has incurred a loss of Rs 5.829 billion during December 2017.

In PESCO area, the highest loss was incurred by Bannu Circle under Noor Ullah Khan, incurring a loss of Rs 1.641 billion in the month under review.  The worst divisions were Karak and Bannu-I under XENs Fazal-e-Rabbi and Zaman Khan with respective losses of Rs 230 million and Rs 158 million.

At the sub-divisional level, the worst were Mattani sub-division under SDO Fazal-e-Malik with a loss of Rs 133.12 million, Doaba under SDO Sajid Bahadur with a loss of Rs 87.28 million and Bannu Rural-I under SDO Muhammad Atif and Murad Ali with Rs 64.26 million.

In QESCO, the highest loss was incurred by Makran CIR Circle under Iqbal Breach with a loss of Rs 456.69 million.  The worst Divisions were Sibbi and Turbat under XENs Azizullah Rind and Bangul Khan Marri with respective losses of Rs 254.6 million and Rs 250.34 million. At the sub-divisional level, the worst were Sui sub-division under SDO Abdul Hameed Bugti with a loss of Rs 87 million, Lehri under SDO Hussain Bukhsh with a loss of Rs 71.56 million and Harnai under SDO Daud Khan with Rs 60.9 million.

In Punjab, LESCO’s performance was the worst with a total loss of Rs 2.136 billion during December 2017 under CEO Wajid Kazmi.  Its worst circle was Kasur under S.Es Mushtaq Ali Qamar and Rustam Ali with a loss of Rs 364.569 million.  The worst two divisions were Kasur Rural and Kot Radha Kishan under XENs Muhammad Ashfaq and Aman Ullah with loss of Rs 95.3 million and Rs 34.3 million.

At the lowest tier, sub-division Rural Area Kasur under Acting SDO Amjad Hussain, Elah Abad West under Acting SDO Abdul Rashid Watto and Hallah under acting SDO Muhammad Hamid Raza incurred losses of Rs 30.5 million, Rs 23.45 million and Rs 16.55 million respectively.

The worst performing CEO’s and SEs in each DISCO have been issued letters of explanation with direction to respond within 14 days. Similarly CEOs of all DISCOs have been directed to take strong disciplinary actions against respective subordinates as well as ensure to undertake whatever it entails under rules to stop this unsustainable quantum of loss and addition to the circular debt.