Power Distribution Losses Wapda

Every productive body requires a mechanism for maintaining equilibrium

between costs and benefits. It should be truer about any public sector entity
running on the basis of citizens' taxes. Wapda is a huge state-unit and its
deficiency in any area multiplies negative impacts and affects the entire national
economy.

Apart from the ever-widening gap between demand and supply of power, Wapda
is marred with maladministration, poor maintenance and dilapidated
transmission network. Its one percent line losses cost Rs 1 billion to the national
exchequer.

Globally, the standard transmission and distribution losses are less than 10
percent of the total production. In case of Pakistan, it is 35 and even 42 percent in
some areas. On the whole, the deficit in administrative efficiency causes Wapda
losses to the tune of Rs35-40 billion per annum. These losses are shifted to the
national exchequer.

Line losses are defined a wastage of electricity during distribution to the tail--end
consumers. Operators/managers of transmission and distribution system claim
that the wastage primarily occurs when transmission cables develop technical
faults during the distribution. Theft/illegal consumption of electricity also adds to
revenue losses.

Furthermore, switching of lines through feeders and transformers result in losses

of electricity; if managed poorly, says Wapda. But the plea is proved wrong when
we evaluate the overall line losses. There are sharp differences in the line losses
of Punjab, Sindh, NWFP and Balochistan. For example, line losses in the Punjab
are much less than that of Sindh. Similarly, losses in NWFP in 2000 were less than
that of Balochistan while the same rose from 13.2 in 2006-2007 to 35.3percent in
2008.
If the transmission and distribution system was the main cause of line losses, such
losses in NWFP would have not gone up from 13.2 in 2006-07 to 35.3 percent in
2008-09.

The table shows that objective conditions and organizational mechanism plays a
vital role. Additionally, application of flawless technology can reduce line losses.
Several hi tech distribution channels are in the market to minimize these losses. In
our case, the full or even partial replacement of the present transmission system
is not possible because of high costs and paucity of funds.

In a nutshell, even if, defective transmission and delivery system in Wapda is

considered a factor in line losses, it is not the * only cause. Transmission and
distribution (T&D) is just a small portion of line losses. The larger chunk of these
line losses occurs owing to wide-ranging pilferage through unregistered meters
and theft of electricity from the main transmission lines.

Table

Province-wise losses transmission losses (percentage).

Province 2006-07 2007-08 2008-09

Balochistan 21.4% 20.8% 20.1%

N.W.F.P 13.2% 34.5% 35.3%

Punjab Sindh 13.6% 36.9% 13.2% 35.9% 13.1% 34.7%

As energy cost for industrial units is high, the managers of industrial units
maintain a liaison with Wapda officials responsible for supply of electricity. A
meter reader whose salary is just a few thousands prepares electricity bills in
millions every month. Moreover, there is a very weak system of counter-check
and meters installed in premises of factories are tampered.

Defective meters are not replaced so that the benefit of doubt would go to the
user. In graph-2, the number of defective meters show zero reading being
charged all unified rates.

Multan, Hyderabad and Faisalabad Electricity Supply companies have the highest I
number of meters showing zero readings. All the three cities are the major
industrial hubs in which industrial players flourish at the expense of public money.
On the other hand, Karachi Electricity Supply Company has shown over the past
several years highest line losses peaking at 41.11 percent in 2001-02.

However, KESC worked hard to reduce their line loses to 34.12 percent in 2005-06
which, however, went up to 35.85 in 2008-09. Similarly, MEPCC faces losses of
41.98 million units owing to theft and the so called technical faults. However it
claims improvement in ad dressing the issue.

According to MEPCO sources the company faced losses of 41,980,000 units during
September 2009 in seven divisions of Multan circle as com pared to last year's
43,890,00( units in the corresponding period of the previous year. They argue that
due to effective measures, the losses have been reduced by 1,910,000 units
though such a meager improvement had a little impact on reduction in line losses.
The company wise details of line lose: mentioned in the table negatt the claim.
Keep on raising their void against high rise in the line-loosen, the government
keeps offering funds to finance their deficits. The government also assumed that
lengthy feeder's will be bifurcated, LT and HT feeder: where necessary, will be re-
corductored. IIT/LT capacitors, nci transformers, flawless electric meters and
sophisticated monitoring system would be installed. Industrial and high
consumption energy meters will be regularly monitored, evaluation the rise and
fall in consumption Although the government plans for reducing line loses all its
measures need more time and money. As far as eradication of malpractices and
malfunctioning are concerned, the political will seems to be missing. A huge
amount of Rs35 to 40 billion losses to the national exchequer is involved; the
reduction in line losses should be FY part of the national agenda and the
concerned parliament committees. The ever-increaser line losses are having cyclic
impact on our industrial, agricultural production and GDP

FESCO 75000

QESCO 16100

HESCO 80700

TESCO 23250

PESCO 41250

MEPCO 88000

IESCO 39050

GEPCO 41600