ISLAMABAD: All electricity distribution companies including K-Electric could not make any major improvement in their performance standards, failed to deliver on loadshedding schedules, struggled in providing fresh connections to eligible consumers and found misreporting.

This is the crux of a performance evaluation report of ex-Wapda distribution companies (Discos) and KE for 2015-16 in comparison four succeeding years starting 2011-12 through 2014-15 compiled by the National Electric Power Regulatory Authority (Nepra).

“It is noted with concern that 2015-16 also did not witness any major improvement in the performance of Discos and KE under the Performance Standards (Distribution) Rules (PSDR) 2005,” said the regulator. Under the said rules, each distribution company is required to submit an Annual Performance Report (APR) in the prescribed format to Nepra.

Regulator finds power companies misreporting on outages and fresh connections

On top of that, the regulator also “noted with serious concern that Discos and KE contributed around Rs49 billion and Rs83bn loss, respectively, to the national exchequer in 2015-16 due to their inefficiency with respect to transmission and despatch (T&D) losses and recovery targets”.

The APRs for 2015-16, 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.

The regulator also reported that the issue of data correctness as reported in previous Performance Evaluation Reports (PERs), remained there. Although, Nepra has already initiated strict action 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.

Due to the issue of data accuracy, this year also Nepra only considered four parameters for the performance ranking of Discos and KE ie T&D losses, recovery, time frame for new connections and safety. Performance ranking was carried out based on the data submitted by Discos and KE and marks are awarded by considering the compliance level in respect of set standards and Nepra’s targets.

Based on the results, Islamabad Electric Supply Company (Iesco) secured the top slot with 72 marks out of 100, followed by Gujranwala Electric Power Company (Gepco) and then Multan Electric Power Company (Mepco).

Iesco was the only distribution company to have managed lower losses than allowed in tariff determination by 0.34pc. All others failed to reach closer to targets. Performance of Sukkur Electric Power Company (Sepco) is worse in this regard along with Peshawar Electric Power Company (Pesco), KE and Hyderabad Electric Supply Company (Hesco). On the other hand, Gepco and Faisalabad Electric Supply Company (Fesco) showed improvements and slightly missed targets.

In overall performance ranking, Gepco and Mepco secured 72 marks and stood second and third followed by Fesco’s 4th position with 71 marks and Lahore Electric Supply Company’s (Lesco) 70 marks. KE struggled at 6th position with 62 marks while Pesco also secured 62 marks but stood 7th. Hesco secured 57 marks, followed by Quetta Electric Supply Company’s (Qesco) 52 and Sepco’s 39 marks at the lowest end.

The reported figures of T&D losses indicated that none of Discos, except Iesco, could meet the regulator’s expectations. On the other hand, Sepco has shown the worst performance among all Discos in this regard. As far as recovery is concerned, Fesco has achieved 100pc target while Iesco Gepco, Lesco and Mepco have also reported more than 99pc recoveries.

Qesco improved its recovery from 32.6pc to 71.6pc in 2015-16 as compared to 2014-15. KE’s recovery rate stood at 87.63pc.

While reviewing the data pertaining to the percentage of consumers who were not provided new connections in 2015-16, it was observed that Iesco and Hesco were faring better and have shown zero pendency of new connections.

Further, Pesco, Sepco and KE have also provided more than 95pc of applied connections in 2015-16. However, Qesco’s performance was worst in this regard.

Nepra expressed serious reservations over the authenticity of data regarding loadshedding being carried out by Discos and KE in their service territories. The data provided by the companies showed they shed the load from one to 4 hours daily which was far away from ground realities and was independently verified by Nepra teams at 8-10 hours on ground.

Further, it is a matter of concern that Discos and KE are not following the order of loadshedding according to different categories of consumers.

Data submitted by Discos and KE showed contradictory situation as the reported figures of number of complaints were not based on factual positions. The regulator said the number of fatal accidents for employees and general public reduced in 2015-16 as compared to 2014-15 yet the reported figure 172 fatalities was still alarming.

“In spite of persistent directives and monitoring by the regulator, Discos and KE did not show any noticeable performance in 2015-16 and continued in the businesses as usual especially in the areas of SAIFI, SAIDI, quality of supply (voltage and frequency), loadshedding and consumer service complaints”, the report concluded.

Published in Dawn, October 4th, 2017