Two loss-making Discos in President''s, Prime Minister''s constituencies

The two major loss-making Discos - one in Sindh and the other in Punjab - are in the constituencies of President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilani, comparative statistics available with this correspondent reveal.
Power Distribution Com-panies (Discos) situated in Sindh, Balochistan and Khyber Pakhtunkhawa top the list of inefficiently run power companies that are the recipients of heavy government injections under the head of inter-Disco tariff differential. Official documents available with Business Recorder reveal that 54 per cent power sector losses are in Hyderabad Electric Supply Company (Hesco), Sukkur Electric Power Company (Sepco), Peshawar Electric Supply Company (Pepco) and Quetta Electric Supply Company (Qesco).
Meager investment in Discos'' system improvements in the last five years, interference in Discos operations, Kunda system and overloading are some of the key reasons of loss in addition to theft in connivance with Discos'' staff," said an official on condition of anonymity.
The actual losses of Islamabad Electric Supply Company (Iesco) stood at 9.7 per cent in 2010-11 against allowed losses of 9.5 per cent, Gujranwala Electric Power Company (Gepco), 11.9 per cent against allowed losses of 10.5 per cent, Lahore Electric Power Company (Lesco) 14.2 per cent instead of 12 per cent, Faisalabad Electric Supply Company (Fesco) 11.2 per cent against 10.8 per cent, Multan Electric Power Company (Pepco) 18.3 per cent instead of 15 per cent, Peshawar Electric Power Company (Pepco) 37 per cent against 28 per cent, Hyderabad Electric Supply Company (Hesco) 33.7 per cent against 28 per cent and Quetta Electric Supply Company (Qesco) 20.4 per cent against allowed losses of 18 per cent.
Last year government bifurcated Sindh in two Discos ie Hesco and Sukkur Electric Power Company (Sepco). However, losses of Sepco are the same as that of Hesco. Pesco had also been bifurcated in two companies'' ie Pesco and Tribal Electric Supply Company (Tesco). The Electricity Act 1910 and Electricity Rules do not provide effective mechanism for enforcement of coercive measures.
Lack of corporate governance, non-professional management for over 10 years, human resource depletion forced by non-professional management, capacity issues in every sub sector and activity and lack of adequate support in non-performing Discos are also some of the key reasons for the disturbed situation in the power sector, the official added.
For recovery of dues, Pepco argues that political and active provincial government support is required to help effect recovery of outstanding dues especially in Hesco, Sepco, Pesco and Qesco. "We have also sought active political support to control theft in Hesco, Sepco, Pesco, Tesco and Qesco," the official maintained.
The Planning Commission maintains that national plan to improve tariff collections along with necessary legislation for penalties should be implemented in letter and spirit. The commission has also recommended that high loss-making feeders should be outsourced for tariff collection. The Planning Commission has also sided with Pepco for collection of bills, saying that bills of provincial governments and defence installations should be adjusted at source.