KARACHI: In Nepra’s Performance Evaluation Report 2016-17 LESCO and K-Electric have demonstrated better performance in comparison with the previous report.
The privatized K-Electric substantially reduced its transmission and distribution losses from 35.9% in 2009 to 21.7% in 2017. Ironically losses of state-run power distribution companies went up 1.3 percentage points. Resultantly, ranking of distribution companies including HESCO, MEPCO and QESCO have worsened.
K-Electric also managed to perform better in terms of digitally mapping its distribution network with 98% coverage while IESCO and QESCO have only mapped 26.3% and 12.8% of their respective networks. Digitised mapping is critical for timely resolution of technical complaints and improving the overall efficiency and contributes to better customer experience.
Industry experts emphasized that the government needs to take tough decisions in order to make power distribution companies more efficient as well as reform the power-sector regulator to make it independent and ensure a smooth functioning of the sector. They suggested that the government should immediately focus on transformation of power distribution companies and make the regulator accountable.
The government and industry officials were of the view that the new administration should stop dictating the regulator about imposing surcharges and cross-subsidy to bridge the budget gap and pave the way for competitive bidding instead of directly picking power generators in a process that lacked transparency. They also called for phasing out power subsidy and introducing direct compensation schemes for poor segments of the society.
