ISLAMABAD – After finding that the performance standards data submitted by the distribution companies (DISCOs) was inconsistent and contained several anomalies, the National Electric Power Regulatory Authority (NEPRA) has decided to build their capacity for better implementation of Performance Standards (Distribution) Rules 2005.
According to an official source, as per Performance Standards (Distribution) Rules 2005 of NEPRA, all DISCOs and KESC have to submit their annual performance reports every year before August 31 of the succeeding year, reporting their technical and operational performance over the past year. Based on their submitted data for the years 2006-07, 2007-08, and 2008-09, a comprehensive analysis report was compiled which revealed that the submitted data was quite different from the ground realities. It was inconsistent and contained several anomalies.
The NEPRA directed its Standards Division to conduct workshops to provide the DISCOs better understanding of the notified rules and capacity building of professionals for proper implementation of the rules. The source said the workshops for GEPCO, MEPCO, FESCO, HESCO and PESCO had so far been conducted, which were attended by the CEOs, chief engineers, superintendent engineers, executive engineers and sub-divisional officers.
The NEPRA’s annual report 2009-10 noted that the DISCOs, besides having inferior operational performance, were not aware of their role and the need of good governance as a corporate entity. The DISCOs, even the loss-making ones, are not reducing their operation and maintenance costs and their mindset is still that of a public sector entity.
Mentioning the high losses in DISCOs, the report says the consumer-end tariffs are highly sensitive to the losses in the transmission and distribution systems. With every percent increase in losses, the tariff increases exponentially. The average losses at the country are around 22 percent, ranging between 10.51 and 37.4 percent.
It mentions that the revenue collection efficiency of DISCOs is very low. Incidentally, the companies with higher losses are less efficient in revenue collection. The collection efficiency of such DISCOs with heavy losses is around 75 to 80 percent.
