Energy corporations endured Rs45b loss in FY18 - The News Observers - Business & World News

Energy corporations endured Rs45b loss in FY18

Power tariff reduced to boost exports

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has expressed critical concern over line losses and lower-than-expected restoration of electrical energy payments by the facility distribution corporations.

In accordance with the Efficiency Analysis Report of Energy Distribution Corporations for fiscal yr 2017-18 launched by Nepra, the distribution corporations contributed a lack of greater than Rs45 billion through the yr on account of transmission and distribution (T&D) losses whereas they did not get better Rs78 billion towards the payments charged.

An examination of T&D losses revealed that not one of the distribution corporations, apart from the Islamabad Electric Supply Company (Iesco), may meet the regulator’s expectations.

It’s pertinent to say that T&D losses of Peshawar Electric Supply Company (Pesco) have been 38.1% towards the 27.62% allowed by Nepra.

Protecting restoration of payments in view, Multan Electrical Energy Firm (Mepco) and Islamabad Electric Supply Company (Iesco) carried out higher whereas Quetta Electric Supply Company (Qesco), with a restoration fee of 46.1%, stood on the lowest stage amongst all of the distribution corporations in FY18.

However, K-Electrical (KE) continued to take the lead by decreasing T&D losses from 25.three% in 2013-14 to 20.four% in 2017-18.

Over time, the efficiency of Pesco, Faisalabad Electrical Provide Firm (Fesco) and Hyderabad Electrical Provide Firm (Hesco) has remained worst on this indicator. The report instructed that T&D losses could possibly be decreased additional by adopting automated metering infrastructure.

The report acknowledged that as per figures submitted by the distribution corporations, the distribution system of Pesco, Qesco, Hesco and KE appeared very wholesome.

Nonetheless, throughout visits by a Nepra group, the regulatory authority had discovered deteriorating situation of distribution networks of a few of the distribution corporations previously.

Restoration charges of Qesco, Iesco, Gujranwala Electrical Energy Firm (Gepco), Fesco, Lahore Electrical Provide Firm (Lesco) and Multan Electrical Energy Firm (Mepco) fell whereas Pesco, Sukkur Electrical Energy Firm (Sepco), Hesco and KE confirmed a marked enchancment in recoveries previously three years.

The report instructed that by means of good governance and administration strategies, the distribution corporations may additional enhance restoration charges.


Contemplating System Common Interruption Frequency Index (SAIFI) and System Common Interruption Period Index (SAIDI) indicators, Sepco’s efficiency was the worst of all with the quantity standing at 568, adopted by Mepco and Hesco with 316 and 180 respectively. However, Pesco, Lesco, KE and Qesco exhibited vital enchancment.

The regulator famous with concern large variations in SAIDI numbers and was of the view that dependable energy could possibly be equipped to end-users by enhancing SAIFI and SAIDI by means of common upkeep of the distribution system.

New connections

Compared to 2016-17, Pesco, Fesco, Lesco, Qesco and KE confirmed enchancment within the provision of latest energy connections in 2017-18.

Iesco confirmed zero pendency for brand new connections, which was removed from floor realities. Nepra group expressed critical concern over the big variety of pending functions throughout visits to totally different distribution corporations.


By way of discount in common every day load-shedding hours compared to 2016-17, Fesco, Lesco, Mepco, KE and Hesco displayed enchancment whereas Gepco ranked the worst with 11 hours of every day load-shedding, adopted by Qesco and Pesco with 5.eight and three.25 hours respectively.

It’s of great concern that the information submitted by some distribution corporations was not based mostly on information, which was verified by the Nepra group throughout visits to totally different distribution corporations and subsequent actions have been additionally initiated. Moreover, the information itself indicated stunning outcomes, which have been exhausting to imagine. For instance, Iesco reported SAIFI at zero.04, which meant that a person buyer skilled zero.04 interruption on common through the yr 2017-18, which was past factual place.

Client complaints

The variety of complaints acquired by the distribution corporations during the last 5 years by means of totally different modes indicated a blended pattern with Lesco, Qesco, Sepco, KE and Hesco receiving an enormous variety of complaints in 2017-18 in comparison with 2016-17.

The information offered by the distribution corporations confirmed that apart from Gepco, Lesco and KE, all different corporations didn’t obtain even two complaints on common per grievance centre per day. This isn’t rationalised as the identical was verified by the Nepra group throughout visits to totally different distribution corporations.


Gepco reported the best deadly accidents ie 29 in 2017-18, adopted by Lesco, Iesco, Mepco, Sepco and Hesco with 21, 20, 17, 17 and 15.

Nepra famous with critical concern that these corporations failed to stick to the protection procedures and develop a security tradition. Distribution corporations are required to prioritise security as of the losses and restoration.

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