Measures being taken for improving power distribution system

Engineering Post Report

The chronic issues of high power transmission and distribution losses with an average of 20.34 percent up to June 2021, low percentage of recovery of outstanding liability i.e. mean recovery of as high as 88.51 percent reported for distribution companies till June 2021 and on top of everything else weak governance have shackled the power distribution system of Pakistan.
Furthermore, the unrealistic targets set by the regulator in respect of investments have created an investment gap in the DISCOs and they failed to achieve the desired results due to overall governance issues. Consequently, the Circular Debt is building up at an alarming rate.
Measures being during the current financial year 2022-23 are briefly given below:

  1. Placement of Independent Board of Directors and exploring the option of outsourcing of DISCOs management functions/operations without ownership transfer and also exploring area franchising structure for improvement in DISCOs efficiency with a clear transaction structure.
  2. Induction of experienced personnel at all levels on merit basis who will be made sufficiently independent in the decision-making process.
  3. Establishment of a competitive market from single -buyer model to multi-player model. In this regard, the regulator i.e. NEPRA will be made capable of managing a competitive , multi-player market.
  4. The rehabilitation of existing distribution network of DISCOs is needed to overcome the losses and poor service delivery issues. Proper implemENtation of Energy Loss Reduction, Distribution of Power & Secondary Transmission and Grids projects across DISCOs may be ensured by enhancing capacities and/or considering outsourcing of operations and maintenance.
  5. Privatization Commision will finalize the roadmap for the privatization of DISCOs at the earliest in consultation with all the stakeholders.
  6. Distribution network for Gilgit-Baltistan and Azad Jammu and Kashmir (AJK) DISCOs will be established at par with other DISCOs currently functioning in the country.
    Currently, there are 10 power distribution companies whose performance up to June 2022 viz a viz addition of consumers, reduction of line losses, electrification of villages and addition of transmission lines of different capacities will be given later, please.