05 January 2004	Monday	12 Ziqa'ad 1424

The decision during late 1998, by the then Government, to hand over Wapda and KESC's managements to the Army greatly highlighted the issue of increasing energy losses- either because of theft or due to technical inadequacies of these utilities.

The perennial petitions thereafter made to Nepra for increase in electricity tariff also made the customers apprehensive about their future abilities to pay for electricity usage.

During the last five years along with abject failure to reduce losses, different approaches to the solution of problems have been taken into consideration by both Wapda and the KESC. Though the progress has been slow, the best solution probably is through state-of-art changes being proposed by some quarter in Wapda i.e. to identify and diagnose the issue of losses through use of customized software developed for micro-processor based energy metering and to thereafter retrieve maximum possible data regarding customer behaviour and characteristics of power supply from the utility.

This is under the assumption that through this scheme, sufficient data would be available for modernization, balancing, optimization and future planning of the system. Though desirable, all this in absence of well though-out strategies would not be able to deliver anything substantial.

The other side of story is that the distribution systems in place, where generation and transmission of energy is to be converted into money, are in deplorable condition. This will be clearly evident if inspection is carried out on 11 KV and Low Voltage feeders in a representative area like Lahore and the surrounding rural areas.

The inspection or study will reveal that nearly all distribution transformers are overloaded- it is so because feeder design (along with the necessary fitments) was based on declared and sanctioned loads of the consumers, which are always on lower side and having no relevance at all to the actual installed loads and the eventual demands. The connections and joints on the lines would be seen to be sub- standard; the feeding cables under-size and the over all power factor on the feeders extremely low - another reason for the inordinate losses on the system.

Solution to the problem requires very careful planning, while the remedial measures can be taken up in phases. To start with, model Sub-divisions inherently different from the earlier or the existing versions need to be created where drawbacks and faults in the system can be removed professionally. The operation and maintenance crews are to be equipped with the necessary maintenance tools along-with the requisite safety equipment and test- instruments.

This exercise shall become a roadmap for eventual modernization and balancing of the whole system. Once the requisite road map is developed, putting it in place should pose no problems-provided necessary funding is made available. Here it is gratifying to note that the required expertise and human resource is already available or can be trained and inducted in a very short period at nominal expense.

Similarly, the required funding too can be arranged even through private sources, in case ADP outlays are not available. As the return on the required financial outlays are phenomenal, hence availing private loans should pose no problem for both Wapda and the KESC.

Another factor which needs to be considered for correction is the fact that starting from power houses right to consumer mains, more than 95 per cent of the installed meters are working on the principle of Ferraris wheel. As these meters have a tendency to slow down with passage of time, the utilities as a consequence get incorrect information for calculation of return on their investments. This misleading information shall make all assessments about the system untrue and definitely on the lower side.

Probably, this is one of the reasons why the needed / required financial outlays are never made and a cacophony of losses is heard all around. In other words the perceived system losses propagated at the moment may not be the actual or the true figures. In fact these are incorrect figures, which get interpolated out of incorrect and stunted metering systems.

Much negative contribution is also made due to the inability of Wapda and KESC engineers to differentiate between technical and what is interestingly labelled as administrative losses. And indeed the respective managements are wholly responsible for this part of the loss. Similarly, the accountants, financial managers and cost- accountants/analysts are also responsible for wrongful and wayward calculations and the eventual non-professional balance sheets. It would also be appropriate to castigate the auditory bodies responsible for clearing these balance/account sheets.

The issue attains even more importance when presently, after corporatization, the GENCOs, the NTDC and the DISCOs are all desiring a 10 per cent return on their sales/ purchases through the pending petitions with Nepra.

In order to understand the issue in it's entirety, we need to start from power stations where incorrect metering leads to dispatch of more energy against the registered figures. This immediately affects the operational economics of the power plants. The same is true for the extra high voltage substations, secondary system substations and the substations lying on the periphery of the distribution companies. This fallacy continues right up to the consumer mains.

In order to retrieve correct information, in our view, the process of modernization and balancing of metering systems and their conversion to microprocessor-based equipment should be taken-up right from the top end i.e. power plants, extra high voltage substations, Secondary Transmission Substations, 132 kV substations and the 11 kv feeders system at the distribution companies.

Wapda has already acquired substantial number of 0.2 class metering systems from Canada and UK, which are presently lying in warehouses serving no purpose. These are ostensibly waiting for complete implementation of the load dispatch project of Wapda, but can easily be used for improvement of the existing metering systems at this very moment. After installation of these accurate metering systems, data transmission shall be possible to the National Power Control Center (NPCC) and the Regional Load Dispatch Centers. This information then shall be put to use for better system planning and the eventual up-to mark service to electricity customers.

Once this objective is achieved, as a next step, a similar exercise can be carried out at the distribution transformers, where we should be able to accurately register the total amount of the active and reactive energy which has been supplied to the consumers being fed from these points. From this juncture onwards, a system of accountability of the concerned engineers and Line Staff can be taken in hand - specially when the total amount of energy supplied to a certain area fed by any distribution transformer is correctly known and in turn the meter readings of individual customers should add up to this supplied energy. Similarly, the bulk metering panels at different industries and MDI meters for big consumers can be converted to microprocessor-based technology on priority.

Keeping a practical approach- specially for the short term, it is recommended that we should use electro-mechanical and hybrid meters, as these are easier to use and to read for medium load industrial and other such consumers. While up-to-mark electro-mechanical meters can be produced in country, the required type of hybrid meters are available in the world with essential software needed to meet the requirements of both Wapda and the KESC.

In such systems, data can be downloaded or retrieved by means of optical probes into palm type computers which are cheaper in price as compared to the hand held devices, which Wapda has acquired under various contracts. It is, however, not known whether the procured inventory has been put to any use as yet or not.One of the typical means of theft is through manipulation of inputs to current transformers. This problem can easily be overcome through installation of direct KWH+MDI meters available in the market, which can be used as whole current meters without the prerequisite CTs.

These meters also have the facility of optical downloading of data through PALM type computers with a maximum capacity of up to 200 Amps. Such meters can cater for small and medium industry, commercial installations and even high usage domestic consumers. Incidentally, the above categories form a very high percentage of consumers of both Wapda and the KESC.

If the above type of metering devices are combined with a suitable security enclosure or what is commonly known as the meter security box, it will take care of the present metering problems of Wapda and the KESC at least for a big range of their consumers. Implementation of this suggestion will vastly improve the position of revenue in these utilities. It would also do away with the problem of burning of and damage to meters- a problem responsible for many a dispute and surely less billing.

So far as normal 3-phase consumers are concerned, they can be served through quality manufactured electro-mechanical meters produced by local manufacturers, which supposedly will work and deliver much better under improved metering and meter testing departments of both Wapda and the KESC - after preparation and implementation of appropriate metering strategies.

A vast majority of Wapda and the KESC low load single-phase consumers need to be tackled separately, as one has yet to make profit out of metering such accounts. Consider the effort of installing meters, maintaining the same in ship-shape condition, recording meter reading, conversion of readings to computer data, printing of bills, payment of bills in the bank with usual delays of credit transfer to Wapda and the KESC accounts and one can easily conclude that the overall direct and financial cost of meter reading in such cases shall be enormous and surely more than the bills eventually collected. Imagine the reduction in workloads if the utilities and the banks were saved the hassle of billing such consumers.

It is suggested that on a trial basis through a pilot project, load break switches-which can be adjusted to various current readings, be installed and sealed at these low load single-phase consumer premises. A number of manufacturers are presently assembling such load break switches. Depending on consumption patterns, the switches can be fixed/set to calculate load limits exceeding which, these will trip.

These could then only be reset by Wapda's own staff. For payment of bills, Wapda can issue passbooks to the consumers, where fixed amount of revenue depending on the average load used, can be deposited every month in banks or the post offices. This suggestion can be even more advantageous in case of low load consumers of Karachi and the KESC itself.

The other concept of prepaid billing cards/ meters is futuristic and appropriate, but fact of the matter remains that this system itself is finance intensive and expensive to put up in place and thereafter to maintain. Moreover, it would again be electronic metering on the single-phase supply level- which is not recommended as yet.

The reasons are obvious and duly listed in the preceding paras. However, an exception can be made for customers which are clustered and are in close proximity to each other. An example of this situation can be Wapda/KESC customers in plazas, shopping malls and apartment blocks etc. In these cases, which can be clubbed under the category of medium and high usage single-phase customers, the pre-payment metering encompassing key paid systems need to be incorporated.

A typical system is laid out for the readers in the accompanying diagram. Remote meter reading is an easy to arrange option in this system. A little insight and understanding would reveal that it is also manageable and elaborate enough to handle the problems of losses and recovery being presently faced by Wapda and KESC.

As opposed to other types of pre-payment metering systems like the smart key or the smart card ones, the key paid system through appropriate and at hand vendors/ vending machines is the answer to our problems. The problems of smart card systems are amply illustrated by the failed public call booths once seen at all major points and now replaced with the duly manned sets.

However in case of bulk consumers, 132 kV substations or 11 kV service feeders, the possibility of usage of electronic metering with the facility of remote meter reading can be considered with accuracy class 0.2 and 0.5 respectively. This type of metering shall be very viable as it would yield data, which is the requirement of Wapda from bulk consumers and also the need of bulk consumers regarding quality of supply from the utility.

At the moment this is the only viable usage of electronic metering in the power systems of Wapda and the KESC. With passage of time and more developments(and comprehension by the utility staff itself), electronic metering can be extended to general MDI consumers, 3-phase consumers and ultimately even the single-phase customers with the possibility of remote meter reading and eventual fall automation as deliberated in the preceding paras. This is going to be in a gradual manner, through which our utilities and consumers both shall develop the mentality to interface with the digital meters.

It would be in order to state further that billing on the basis of suspect metering is the major cause of unpaid bills and arrears and the main reason for eventual write-offs. Unpaid bills to the tune of tens of billions each year and perennial billing disputes- even amongst government departments, all lead to the conclusion that both Wapda and the KESC are paying for their wrong or inappropriate metering strategies. Last year's write-off amounting to Rs6.5 billion by the outgoing MD of the KESC and the present MD's resolve to resort to this very exercise in face of slow and tardy recovery is an eye-opener and a proof that metering plays the most important role in making or breaking up of any utility.

Moreover, the ability of the utilities to strictly follow the required changes and to adopt appropriate metering systems for various categories of customers would play the leading role in any effort to curb energy losses and thus stem the ever increasing burden (in billions) which the nation has to face at present.

In order to quantify and pinpoint the best of the systems, pilot projects would need to be implemented by calling of international expressions of interest. All this is bound to play a major role in proper corporatization and eventually privatization of the power sector. We must remember that no one would wish to ever buy a loss making venture - but for free. No level of enticement would ever change the basic requirements of potential buyers of both Wapda and the KESC.