“The reported figures of T&D (Transmission and distribution) losses indicate that except IESCO (Islamabad Electric Supply Company), none of the other discos could meet the regulator’s expectations,” read NEPRA’s evaluation report 2016-17.
Among all the discos, “SEPCO (Sukkur Electric Power Company) has shown the worst performance.”
That said, SEPCO too has improved its recovery to 110.8 percent in 2016-17 from 55.2 percent in 2015/16. IESCO and Lahore Electric Supply Company (LESCO) achieved 100 percent recovery targets. The Quetta Electric Supply Company (QESCO) recovery levels went down to 43.5 percent from 71.6 percent.
The losses comprised both technical and non-technical losses. Technical losses are naturally-occurring losses due to power dissipation in the distribution system, said NEPRA. Main reasons of technical losses are lengthy distribution lines, inadequate size of conductors and installation of distribution transformers away from load centres. Non-technical losses are mainly due to power theft and non-payment by consumers.
“T&D losses have serious financial implications for the respective discos as well as the whole power industry,” the regulator said.
NEPRA said the fiscal year under review did not witness any major improvement in the performance of distribution companies and K-Electric.
Similarly, the issue of data correctness as reported in the previous performance evaluation reports remained unchanged. Nepra has initiated actions against fake reporting by the distribution companies and is trying to bring them within the frame of compliance of performance standards based on facts.
“During FY 2016/17, NEPRA continued monitoring activities including data verification and found that the data submitted by the distribution companies is significantly fudged,” the regulator said.
The NEPRA initiated legal proceedings against all distribution companies except Multan Electric Power Company (MEPCO) and QESCO. The regulator penalised Lahore, Gujranwala, Hyderabad, Sukkur, and Faisalabad power distribution companies and proceedings against IESCO and K-Electric are still pending.
To measure the performance ranking of discos and K-Electric, NEPRA had four benchmarks: T&D losses, recovery, a timeframe for new connections and safety due to the issue of data accuracy.
Performance ranking is carried out based on the data submitted by the discos and K-Electric and marks are awarded by considering the compliance level in respect of standards and Nepra’s targets. IESCO maintained its first position. Gepco and Lesco have acquired the same marks, but both have been segregated on the basis of a number of fatal accidents and awarded 2nd and 3rd position, respectively.
Owing to a decline in losses and recovery, Mepco’s ranking fell to the fourth position while K-Electric improved its position to fifth in 2016/17.
