IESCO Pindi Sadar sub Division losses and recovery report. Suggestion for loss reduction and recovery improvement.

1. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
Losses and Recovery in Jhanda Chichi
Sub Division Saddar Cantt
Islamabad Electric Supply
Company (IESCO)
Submitted By: Muhammad Zahid
Regional Training Center (RTC)
m.zee572@gmail.com

2. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
Contents
1. Losses and Recovery in IESCO.......................................................................................................3
2. Losses in Power System...............................................................................................................4
2.1. Transmission Losses.............................................................................................................4
2.2. Distribution Losses...............................................................................................................4
2.3. Why Losses..........................................................................................................................4
3. Jhanda Chichi Sub Division Losses and Recovery............................................................................5
4. Recovery.....................................................................................................................................6
5. Suggestions.................................................................................................................................6
5.1. For losses Reduction ............................................................................................................7
5.2. For Recovery Improvement..................................................................................................7
6. References..................................................................................................................................7

3. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
1. Losses and Recovery in IESCO
IslamabadElectricSupplyCompany(IESCO) face 2mainproblemintermof lossesinpowersystemand
revenue collectionagainstuse of electricity. Inall distributioncompaniesIESCOatthe top inboth
categoriesinlossesreductionand recoveryimprovement.IESCOcontractwithprivate firmtostart a
newservice forcomplaintsname “ROSHNI” whichtake the complaintsfromconsumersandforwardto
the IESCO staff andtry to resolve itas soonas possible.
IESCOaimsto
o Reduce line losses
o Increase revenue generation
The National Electric Power RegulatoryAuthority(NEPRA) has turneddown the pleaof power
distributioncompanies that wanted to put an additional burdenof billionsof rupees,causedby
electricitytheft,on honestconsumers that are payingtheir billsregularly.
Islamabad Electric SupplyCompany (IESCO)
had in their reviewpetitionsaskedthe regulator
to allowan increase inthe loss ceilingso that
they couldrecover the cost of power theftfrom
the consumers. In the case of IESCO, the regulator,
which had allowedrecoveryof 9.39% lossesfor
financial year 2015-16, has significantlyreducedthe target for 2016-17 to 2019-20.
NEPRA will considerthe proposedreductionof 0.1% in transmissionand distribution(T&D) lossesin
five years beingillogical andkeepingin view the requestedinvestment,agreedona more accelerated
reductionin lossesfrom 9.44% in 2014-15 to 7.8% in 2019-20, a decrease of 1.64 percentage points.
IESCO pointedout that Azad Jammu and Kashmir (AJK) had owedRs37.8 billionbythe end of August
2015, whichwas the resultof a difference betweenthe tariff appliedbythe petitionerandthe rate at
which paymentswere made by the region.

4. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
2. Lossesin Power System
In our systemlossesare dividedintotwotypes;
o TransmissionLosses
o DistributionLosses
2.1. TransmissionLosses
The losseson132 kV and 11kV transmissionlinesare consideredasTransmissionLosses.These are0
mainlyhandle byNational transmissionanddispatchcenter(NTDC) andRegional Controlcenter(RCC).
2.2. Distribution Losses
Where as the losseson11 kV and 440 Voltslinessupplyingthe consumersare calledDistribution
Losses.
2.3. WhyLosses
In a system, generallythe highlossesare due tolack of propermaintenance andelementsof theft.
Reductioninlossescanbe achieved,byinstalling
propersize of conductorin 11kV feeders,low
tensionlinesandalsobyinstallingcapacitorbanks,
to reduce reactive powerandtherebyimproving
powerfactor.Energysentout isshownin the form
of itsbreakupas sale,distributionlossesand
transmissionlosseswiththeirpercentagesin
the figure forthe year 2013and 2014.
Brig Iqbal saidthe reductioninline losseswasagreat accomplishmentamongall SouthAsianelectricity
distributioncompanies. He saidthe companyrevenueshadincreasedtoRs22.05 billioninthe lastone
year,whichwasRs2 billionmore comparedtolastyear’sfigures.

5. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
Accordingto official sources,7,825millionunitswere receivedfordistributionoutof which7,232
millionunitswerebilledtothe customerswith7.6 percent line lossesascomparedtothe lastfiscal
figure of 8.9 percent.
IESCOofficialsinsistthatthe figure fortransmissionanddistributionlosseswasthe lowestamongall
powerdistributioncompaniesoperatinginthe countryascompare tothe otherdistributioncompanies.
“We maintainedahighrecoverypercentage,improvedcustomer servicesbesidesexecutionof
secondarytransmissionandgrid(STG) linesprojects,energylossreductionprogramanddistributionof
power”.There are alsomany otherreasondue to lossesincrease,someimportantsuggestiongivenat
the endby considering themseriouslywe shouldprobablyourlossesupto90%.
3. Jhanda Chichi Sub DivisionLosses and Recovery
A recordof subdivisioncollectsbyusto findoutthe yearlylossesandrecoveryof subdivision.
Jhanda Chichi Sub Division
Sr No Month UnitsReceived
Units
Billed
Units
Lost
% units
loss Assessment Payments
1 Jul-15 9194999 7597341 1611506 17.50% 131172083 107582595
2
Aug-
15 8695371 8932627 -133712 -1.50% 149306936 125265388
3 Sep-15 7085204 7777238 -476757 -6.70% 125178367 99861821
4 Oct-15 5437336 6652675 -1051599 -19.30% 85904146 129939343
5
Nov-
15 4200202 5141629 -839446 -20% 41738433 48830350
6
Dec-
15 4491527 4113651 473706 10.50% 60042079 45526339
7 Jan-16 4975381 4488610 699213 14.10% 69927330 59063282
8 Feb-16 4422878 4839318 -241805 -5.50% 70038172 60690435
9
Mar-
16 4509747 4868632 -214324 -4.80% 71318995 64613138
10 Apr-16 5133242 4743480 519635 10.10% 65476821 52630594
11
May-
16 4599678 4388876 473706 10.50% 75886632 65321654
12 Jun-16 10071709 7520017 2697753 26.80% 91098619 110727395
Yearly Total 72817274 71064094 3517876 2.64% 1037088613 970052334
Lossesrecordaccording to givendatashow the total receivedunit72817274 but billedunitsare
71064094, so difference of 1753180 unitsare lossinform of recoverylossmeanthere isnorecovery
amountof these units.While 3517876 unitlossesintechnical aswell asmanagerial loss atsubdivision
of JhandaChichi.Annul average lossrate is2.64%,IESCO subdivisionhaslesslossrate howeverother
distributioncompaniessubdivisionhave higherlossrate ascompare to IESCO.With respecttoother
distributioncompaniesIESCOisat the top onall categories.

6. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
Recoveryrecordaccordingto givensubdivisiondatainwhichassessmentisthatamountwhichshould
be paidby consumerwhichis1037088613. Howeveronly970052334 are paidin a yearand recovery
lossof 67036279 rupee will be onIESCOside.Thisamountisrare chance torecoverbecause that
consumerhave criminal record,politicianetc.
4. Recovery
Anyorganization progressdepends onitssalesandrevenue of itsservice. Whilerecoverystatisticin
IESCOare following:
NEPRA’sState of Industry Report 2015 states that Rs120 millionhad beenaddedto the stock of
recoveries,takingthe total to Rs600 million. The recoveryof monthlybillsand arrears is also an
important issue on which the prospects of success are better than the loss reduction – recoveriesare
recorded and identifiable while theftisdifficulttopinpointand eliminate.
IESCOchief saidseveral electricityconnectionshadbeencutoff due to non-paymentsof bills.However,
he saida one-windowoperationhadbeensetupforthe convenience of consumers. Thereisno
provisionorproof of its existence,butongroundthisline provideselectricitytomore than2,000 houses
inMehrabad village,one of the largestunplannedsettlementsinIslamabadsetatthe junctionbetween
sectorsF-10 and G-11.“I payRs1,000 to the contractor everymonthandget electricitywithoutany
metering,”saidAshraf Gill,aresident of Mehrabad. AccordingtoIjazKhan, anothervillager,IESCO staff
isheavilyinvolvedinthe electricitytheft. Due tosome staff organizationface saviordamage intermof
lossesandrecovery.
“The line isspreadoveranarea of twokilo metersinthe village.The officialsreceive heftycutsfromthe
contractor whodistributeselectricitytothe housesinthe villages,”he alleged.
He thenrattledoff a fewotherachievementsthatthe companyhadmanagedtosecure:“IESCO has
negotiatedaloanof US$ 58.496 millionfromthe WorldBankfor the financingof 2ndyear of 6th STG
programme andenergylossesreductionprogramme.”
USAID finance IESCO for differentenergyprojectinformof generationof energy,theirdistributionto
the customerwithreliable andsecure source.Theyhave playedaimportantrole toreducingthe theftof
electricityandloadshadingmanagement. While smartmeterproject beingfinancedby the Asian
DevelopmentBank,1.17 millionsmartmeters wouldbe installedinIESCO covering35% of customer
base and 800,000 smart meters in IESCO to cover the same percentage. By installingsmartmeter on
everygridstationandtake theirrecord to improvementof distributionandgenerationsystemof IESCO.
5. Suggestions
Manual recordingis often unreliable andthere is vestedinterestinnot showingreal numbers.
Extensionof SCADA (supervisorycontrol and data acquisition) upto 11-kilovoltfeedersand
installationof monitoringequipmentand smart meters at sub-stationscould provide the required
data apart from improvingactual performance. Consumersnormally complainof error in billing,

7. Losses and Recovery in Islamabad Electric SupplyCompany(IESCO)
average billing,difficultiesinlodgingcomplaints,locationsof complaint centers,etc. Analysisof such
complaintsand trendof improvementisa must for performance improvement.
Customer satisfactionsurveys,data collectionappsand annual performance reports compiledby
NEPRA or independentconsultantscan helpimprove performance.
5.1. For lossesReduction
o Try to reduce technical lossinsystemthroughitsmaintenance andupgradationof equipment
accordingto the existingtechnology.
o Managementof electricity waste especiallyinpublicarealike streetlights,parklightsetc.
o Take seriousstepforelectricitytheft.
o Damage meterreplacement.
o Accurate meterreading.
o Reasonable ratesforelectricity.
5.2. For Recovery Improvement
o Firstof all billingattime.
o Strict watchon meterreaderandbill distributorandorderthemtodo theirworkon time.
o Take action againstconsumerwhodidn’tdeposittheirbills.
o Bill arrearsprovide the consumerwithtime totime.
o Assure recoverybyissuingdisconnection notice (equipmentremoval orderERO) ratherthan
warning.
o Checkingof arrears,defaultersanddamage metercomplaintsondailybasis.
o Watch staff dutiesstrictlyalsoencourage andpromote themontheirgoodperformance.
o Start a newbill collectioncenterforease of consumersdue toproblemfacingbyotherlocal
mobile companiesbillcollectionservice.
o Smart meterinstallationmuchbetterbutincase of other meterespeciallyinstructmeterreader
sectiontotake snapshotas clear as possible,andgave themlatestequipmentforthis.
6. References
1. www.iesco.com
2. www.nepra.com
3. www.ntdc.com
4. www.dawn.com
5. www.pakistantoday.com
6. www.wapda.com
7. www.usaid.com
8. www.asiabank.com