Power sector's performance further worsens

The performance of power sector has further worsened with respect to losses and recoveries during the first half of current fiscal year in general and in December 2019 in particular, well-informed sources told Business Recorder.

The poor performance of Discos was revealed at a recent meeting of Chief Executive Officers (CEOs) of Discos under the chairmanship of Secretary Power Division, Irfan Ali who grilled them and directed that performance be improved.

Sources close to CEO Islamabad Electric Supply Company (Iesco) told Business Recorder that the monthly transmission losses of Fesco, Iesco, Pesco and Qesco increased by 0.67 per cent, 0.08 per cent, 1.61 per cent and 0.19 per cent respectively in December 2019 as compared to December 2018. The progressive transmission losses of Fesco and Qesco increased by 0.01 per cent and 0.30 per cent respectively from July 2019 to December 2019 as compared to the corresponding period of previous year.

The monthly distribution loses of Iesco, Tesco, Hesco and Qesco increased by 1.47 per cent, 4.34 per cent, 0.32 per cent and 2.93 per cent respectively in December 2019 as compared to December 2018. The progressive distribution losses of Qesco increased by 4.79 per cent during first half of current fiscal year as compared to same period in 2018. The computed billing and collection without subsidy was as follows: (i) overall amount billed by Discos against all consumers increased to Rs 35.18 billion while recovery was Rs 30.36 billion in December 2019. Overall billed amount by Discos was Rs 177.67 billion while recovery stood at Rs 169.67 billion during the first half of current fiscal year. Overall amount billed by Discos against private consumers increased by Rs 31.71 billion whereas recovery was Rs 29.49 billion in December 2019 as compared to December 2018. However, recovery during the first half of current fiscal year stood at Rs 140.06 billion against billing of Rs 158.56 billion. Overall, computed recovery of Discos decreased by 1.71 per cent during December 2019 compared to December 2018. The percentage of recovery by Discos decreased during July 2019 to December 2019 as compared to corresponding period of previous year as follows: (i) Lesco - 1.19 per cent, Gepco- 0.65 per cent, Fesco - 0.88 per cent, Iesco - 0.51 per cent, Qesco - 1.24 per cent and Tesco - 31.72 per cent.

Talking about percentage of recovery (private consumers computed without subsidy excluding QTA/ZRIR/FPA) the sources said overall computed recovery of Discos increased by 0.19 per cent in December 2019 as compared to same month in 2018. The percentage of recovery of Discos decreased in December 2019 compared to December 2018, i.e. Pesco - 0.04 per cent, Pesco - 3.78 per cent and Tesco - 44.94 per cent. The percentage recovery of Discos also decreased s as follows: (i) Gepco - 0.14 per cent, Fesco - 0.03 per cent, Iesco - 0.20 per cent, Mepco - 0.06 per cent, Qesco - 1.24 per cent and Tesco - 31.72 cent.

Overall, percentage of Discos' remittance against invoices was 61.06 per cent in December 20198 which was 9.21 per cent higher than December 2018. Overall percentage of Discos remittance against invoices was Rs 74.15 per cent during the first half of current fiscal year which was 3.37 per cent higher as compared to same period of FY 2018-19. According to sources, overall Transmission and Despatch (T&D) losses of Discos have increased by 0.18 per cent in December 2019 as compared to same month in 2018. The monthly T&D losses of Fesco, Iesco, Pesco, Hesco, Qesco and Tesco have increased by 0.60 per cent, 1.50 per cent, 0.44 per cent, 0.08 per cent, 3.03 percent and 0.35 per cent respectively. Overall T&D losses of Discos have decreased by 0.46 per cent during the first half of current fiscal year as compared to corresponding period of 2018-19. The progressive T&D losses of Qesco have increased by 4.94 per cent.

The monthly T&D losses without unpaid detection units have increased to 17.99 per cent instead of 16.31 per cent during December 2016. The losses of Sepco and Hesco without unpaid detection units increased to 43.84 per cent and 28.44 per cent instead of 24.65 percent and 23.93 per cent respectively. The overall progressive losses without unpaid detection units increased to 18.52 per cent instead of 16.39 per cent during first half of current fiscal year. The losses of Sepco and Hesco without unpaid detection units increased to 56.63 per cent and 44.67 per cent instead of 36.75 per cent and 29 per cent respectively. The total stocks of private running arrears have increased by Rs 47.616 billion during the first half of current fiscal year as compared to same period last year. The private running arrears of Lesco, Gepco, Fesco, Iesco and Mepco have decreased by Rs 268 million, Rs 186 million, Rs 8 million, Rs 320 million and Rs 1.437 billion respectively as compared to June 2019. Whereas, private running arrears of Pesco, Hesco, Sepco, Qesco and Tesco have increased by Rs 2.138 billion, Rs 6.424 billion, Rs 7.549 billion, Rs 28.217 billion and Rs 5.507 billion respectively as compared to June 2019.