Then he proudly propagates his other most special of the accomplishments, viz the remarkable reduction of line losses from a high of 42 per cent ending 1997 98 to only 25 per cent i.e., first ending 2001-02 and now ending December 2002. As if it was not enough, the chairman goes on to tell us about his other feats. These are the millions of complaints that got attended during the last four years as against the negligible redressal during 1998. Then is the stupendous increase in the number of customers as if they had to be convinced for seeking connection to Wapda mains.The list of achievements does not end here and we are told about the great strides made to reduce the receivables from as much as Rs58 billion to only Rs38 billion now. It is then the turn to clap at the 226 grid stations completed during the golden era. The GBHPP, it is informed, will be spewing cheap electricity early next year. That this, was to start supplying firstly in December 2002, then in June 2003 and now in early next year is of no consequence, because change in completion schedules can take place anywhere and any time. On criticism that Wapda’s own thermal power plants were not repaired forcing the utility to rely exclusively on the expensive IPPs, we are simply told that it is not so, because 10 per cent increase in thermal power just took place in the FY 2001-02 alone.
And on charges of witch hunting, below par career management and stunted training facilities, we are told that nothing could be better and institutions like the LUMS, a University of Engineering and Management Sciences, the IBA, and the Lahore School of Economics are awash with Wapda officers studying there on Wapda’s expenses. The biggest of the accomplishments, however, remains the minuscule increase in electricity tariff since April 1999 till date, which, whatever happens, remains only 17 per cent. The fact that this figure retains its luminance even after umpteen increases further confirms the validity of the same. The colossal losses being sustained by the utility each year leading to huge budgetary deficits for the GoP are but conveniently kept hidden sometimes masked as something natural.
The actual situation is totally different and all these accomplishments can be rightly categorized as simple lies. Various senior officers of Wapda have at different times said otherwise the facts indeed being something else. Revenue increased from Rs93 billion during FY 97-98 to only Rs159 billion in FY 2001-02 and not Rs186 billion as the Chairman Wapda would have us believe, or as the President Musharraf was made to say in his various speeches to the nation. This is so because the figure of Rs186 billion includes electricity duty, the GST and withholding tax, which cannot ever be Wapda’s revenue. It is most pertinent to note that Wapda’s revenue for the FY 97-98 was the least because collections against the public sector stood at 44.80 per cent, while the same against private consumers remained above 95 per cent. In case of subsequent years the yearly collection against the public sector has been 78 per cent, 95 per cent, 119 per cent and 95 per cent — as such comparison of the FY 97-98 with that of FY 2001-02 is inappropriate and skewed.
On the other hand, as to why the Chairman compares the collection for FY 2001-02 with FY 97-98, when he took over in late 1998 is not understood. This is all the more perplexing when we see that his troops only took up action in the field from February 1999 onwards. Actually he needs to compare, if at all there is a need, with the results of FY 1998-99 and not with any earlier periods. In that case we see that Wapda’s revenue only increased from Rs121 billion to Rs159.6 billion — an increase which is less than the increase on account of tariff increases and normal load growth (see table). Line losses stood at 26 per cent ending FY 97-98, became 27.5 per cent ending FY 98-99, 27.3 per cent ending FY 99-00, 25.7 per cent ending FY 00-01 and again 25.7 per cent ending FY 01-02. As such the 0.2 per cent decrease affected in FY 01-02 was in fact after an increase of 1.5 per cent and 1.3 per cent increases during FYs 98-99 and 99-00. If we consider the losses as quantum of units lost, we see that against 14.602 billion units loss during FY 97-98 as much as 15.702 billion units were lost during FY 01-02, an increase of 7.5 per cent. Coming to redressal of millions of complaints, the opening up of the CSC’s, holdings of Kutcheries, the so-called one window operations and continuity of supply, we see that the taste of the pie remains in its eating. The customers would be a better judge to comment on this, but it would suffice to state that as against 331,480 and 43,353 disruptions of the below 20 minutes and the above 20 minutes variations during FY 97-98, 466,530 and 49,548 disruptions or tripping took place during FY 01-02- -an increase of 40 per cent — so much for better operations. Increase in customers did take place, but it is normal and only demand-driven. In Pakistan no one markets electricity and hence this cannot be any special achievement. The receivables are another sordid tale.
The figure of Rs43 billion ending FY 1997-98 increased to Rs54 billion at the end of the FY 01-02 and that too after a whopping Rs18 billion write-off and as much as Rs35 billion at-source deduction against the public sector. And Chairman Wapda states that the receivables are only Rs36.38 billion. The springhead of these figures could only be the fertile brains at work in Wapda these days. Strangely only public sector receivables are quoted being outstanding and the colossal Rs24 billion of private areas or receivables seemingly do not exist.The chairman, in order to divert attention towards this omission, keeps on saying that all ills generate out of the public sector outstandings, as according to him nearly 100 per cent billing against the private consumers gets collected. Imagine the fate of this utility at the hands of a person for whom a few per cent makes no difference, when even small fractions equal millions of rupees. Moreover, the very fact that private receivables have ballooned from Rs13.7 billion to Rs24 billion proves this fact. Another most unfortunate issue/facet of Wapda’s working remains the inordinate delay about the completion of the GBHPP — and as to how the Chairman keeps on shifting its completion date. It must be remembered that this project of national importance stands delayed by over two years now at a cost of above sone billions to the nation. As against early 2002, the project is expected now to start partly working in early 2004. So much for the present efficiency and expertize in project management.
Besides this unexplained and most damaging delay is the suspect contracting for this project and the Italian contractor’s first leaving the site in late 2001 and then coming back at a heavy price. According to insiders $90 million have been paid to entice them back. No details, however, have been made available to the public leading to a rightful suspicion.
Then comes the ever static l7 per cent increase in tariff during the last four years. On the contrary, comparison of bills pertaining to January 1999 and those of January 2003 would lead us to conclude that the increase, inclusive of the present GST of 15 per cent is between 50 per cent to 100 per cent for various categories. In case of fixed or the minimum charges for two part tariffs, the increase is over 100 per cent. The reduced capability of Wapda’s own thermal stations can be gauged from the fact that only 15 billion units were produced by the IPPs in FY 1997-98 while Wapda was forced to buy 24 billion units from these very IPPs during FYs 2000-01 and 2001-02.
On the other hand, Wapda’s own thermal production fell from a high of 19 billion units in 99-01 to only 16 billion during 2000-01 and thereafter could only reach 18 billion units in FY 2001-02. The mere fact that tens of belated tenders were called during late 2001 and 2002 for repairs to thermal limits further attests to the rot and relegation of Wapda’s own cheap power producing units to expensive purchase from the IPPs. The market is also replete with collusion stories and that the above repairs were held up purposely. The recent accolades showered on Wapda by the happy IPPs-specially Hubco, is another indicator. The deplorable delay in completion of important 500KV and 220KV grids and transmission lines leading to annual losses equalling billions, is another facet about which much incriminatory can be said. Now we come to the issues of witch-hunting, the HRM and the HRD and we see that a great number of experts either opted for premature retirements or simply resigned their positions indeed a very cogent way to express resentment to the on-going witch-hunting etc,. The fact that nearly all those who were sent home through inquisitions are coming back, on the basis of castigating decisions of various courts, proves the poverty of disciplining action by Wapda’s present management. It is also a lie that Wapda is sending its officers to such institutions like the LUMS, the University of Engineering and Management Sciences (a non-existent institution), the Lahore School of Economics and the IBA Karachi. Actually Wapda even discourages officers applying for study leaves and thus quite a few had to leave the utility in order to pursue further studies.
All in all, the last four years of Wapda have been the time for figure fudging and lies. Thus there arises a need to understand as to why Wapda lies. What exactly is the need to propagate false figures. Why do non-happenings get converted into great events and as to why no one checks this blatant figure fudging and lies. It also needs to be understood whether all this is an attempt to placate the general population or pure inefficiency, inability to understand the working of power utilities, the failure to run Wapda, apathy or an attempt to save oneself from punitive action. Is it because of the fact that Pakistani officialdom thrives on lies and those who govern find it comforting this way or is it due to lack of remorse and a stiff conscience. Is the fact that such white collar crime—figure fudging and falsifying data is inherently such a crime— is not considered as such. At the same time the issue attains utmost importance when the deception is too deliberate and shameless. But it has to be remembered that one can only have the nerve to tell lies, spread falsehood and deceive the public, when there is little to worry about.
A little understanding of issues and the need to induct the present incumbent as Chairman Wapda in late 1998, would reveal that the then PM — fearing losses in Wapda, changed its management. Thus the basic goal was to save Wapda and the KESC from impending losses. Unfortunately Wapda and the KESC suffered Rs41 billion and Rs17 billion losses, respectively for the FY 2001-02,which have been conveniently attributed to the forced IPP purchase, and fuel oil hikes. During the last four years Wapda operated without any check from the ministry of water and power reporting directly to the overworked CE and thus was able to propagate fudged figures in face of continued failures. Nepra was bulldozed into compliance — Justice (R) Saad Saood Jan’ s resignation of last year as Chairman Nepra is also in the same vein. Reportedly, this resignation was triggered by Wapda’s continued failure to meet with any of the targets accepted by it on approval of its many tariff increase petitions and the extraneous pressure exerted on Nepra to award more increases without any respite for the public. Actually, the regulator had been relegated to the position of an accomplice to the inefficiency of Wapda. Wapda’s failure was further kept hidden, because Wapda was able to convince all who mattered that otherwise it could be billed as Army’s failure.
Furthermore, the fear of retributions also made it necessary to present false progress. Another reason that allows lying is the illusion of reform afloat in the country. And this illusion has created the space for various kinds of frauds. This was also the reason for the reign of terror unleashed in the utility and the most repressive atmosphere there. This foul-up and simple lack of understanding power utility management or its dynamics also includes breaking of all rules and regulations ever laid down for conducting purchases and awarding contracts. The Pakistani press, however, needs to be congratulated because all shenanigans have been duly reported by them.
(The writer is the former Member Power, Wapda, and former chairman, KESC)