Relying on PTI govt’s evaluation, PM approves reconstitution of BoDs of 3 Discos

LAHORE: Prime Minister Shehbaz Sharif has relied upon the performance evaluation of the Pakistan Tehreek-e-Insaf (PTI) government to reconstitute Board of Directors (BoDs) of Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco) and Lahore Electric Supply Company (Lesco), said sources. It may be noted that the Prime Minister has approved the reconstitution of the BoDs on 12th October 2022.

However, the summary is yet to be notified after the approval of the federal Cabinet through circulation. The PTI government had carried out performance evaluation back on 20th January 2022 against the targets set for the three distribution companies (Discos) at the end of 2nd quarter of FY 2021-22. According to the performance criteria set by the PTI government for all the distribution companies (Discos), copy available with Business Recorder, it has 10 performance parameters to evaluate performance.

Performance evaluation of Lesco suggests that the Transmission and Desptach (T&D) losses increased from proportionate target by 0.35% while the computed recovery (without subsidy) is 1.34% less than target. Similarly, the Aggregate Technical & Commercial (AT&C) losses increased from proportionate target by 1.54%.

The receivables against all consumers are required to be reduced by 5% from Jun-21, whereas receivables ending Dec-21 increased by Rs14,268 million from Jun-21. Similarly, the receivables against private consumers registered an increase of Rs11,840 million from Jun-21. The company also lagged behind from targets for execution of HT/LT works and installation of ABC cable. MMR average age accuracy was less than 100% against general, industrial and tube-well consumers and the company could not achieve the target for installation of other than industrial connections and addition of load (MW); target for addition of load (MW) was also not achieved for industrial connections. Credit bill adjustments are processed beyond the target.

According to performance evaluation of Iesco, the company lagged behind targets for execution of HT/LT works, addition of grid stations and transmission lines. The MMR percentage accuracy was less than 100% against general, industrial and tube-well consumers while the credit bill adjustments were processed beyond the target.

So far as Fesco is concerned, its computed recovery (without subsidy) was 0.14% less than target and the receivables against all consumers were required to be reduced by 5% from Jun-21, whereas receivables ending Dec-21 increased by Rs1,256 million from Jun-21. Similarly, receivables against private consumers registered an increase of Rs1,461 million from Jun-21. Lesco also lagged behind targets for addition of transmission lines and the MMR percentage accuracy was less than 100% against general, industrial and tube-well consumers. It also failed to achieve the target for installation of new industrial & other connections and addition of load (MW). The AMR meters were not installed as per the given target while it also failed to achieve the targets for reduction of feeders’ category on the basis of AT &C losses. The company had processed credit bill adjustments beyond the target. Meanwhile, all the three Discos also failed to perform on financial, customer relations management, human resource and safety management.

Copyright Business Recorder, 2022