Lesco power losses jump to Rs1 billion

Chief executive says these are distribution losses;

acknowledges employees involved in inflated bills

LAHORE

Power losses of Lahore Electric Supply Company (Lesco) started rising in the month of February 2017, jumping to nearly one billion rupees, documents available with The News revealed here on Thursday. Not only power losses of Lesco saw an increasing trend on month-on-month basis but, more worryingly, its progressive losses (July 2016-Feb 2017) are also on the rise.

During the past month (February), 65.64 million units of electricity were lost, thanks to inept management of company’s affairs. Comparatively, in February 2016, the power losses of the company were 57.44 million units, during July 2016-Feb 2017 period, 1.36 billion units or around 11 percent of billed units have been lost, having a huge value of approximately Rs20 billion, claimed sources. The energy losses, which are calculated as a difference between billed power units and amount received against them, are mainly attributed to electricity theft, said sources.

It has been alleged that electricity theft is going on in the power utility in connivance with its staff. In January 2017, power losses of Lesco were 8.0 percent of the billed units, showing loss of 101.82 million units. The estimated loss of revenue has been calculated at Rs1.5 billion approximately on this account.

In terms of burning issues of power losses, Lesco is the second worst performer among the so-called efficient power distribution companies, belonging to Punjab province, claimed sources. Lesco covers one of the most developed regions of the country, comprising Lahore, which is hometown of Prime Minister and Punjab Chief Minister, Sheikhupura, Nankana Sahib, Kasur and Okara districts. The power losses are a major contributing factor in snowballing of circular debt, which is once again out of control and nowadays hovering around the 2013 level, when present government had cleared it with a view to getting rid of this menace, said sources. It seems that power managers sitting in Islamabad are forgetting the basic fact of energy sector that lower losses simply means lesser financial liabilities for all the supply chain, sources opined.

The problems of non-availability of fuel for power generation are also one of the outcomes of such example of bad governance, source observed.

Wajid Ali Kazmi, Chief Executive of Lesco admitted increase in the power losses of the company, asserting that these are distribution losses. However, he hastened to add that the transmission and distribution losses of the company remained flat in February if compared with the corresponding period of the last fiscal.

Moreover, he insisted power losses of the
company were mainly of technical nature.

To a question, he acknowledged the fact that employees of the company were purposefully involved in issuing inflated bills to consumers.

In order to make fair billing system, the Lahore Electric Supply Company CEO said his company is pioneer in introducing mobile meter reading.

No management of other power utility has dared to introduce this innovating system in the country, he claimed and adding that it would help in controlling problem of over-billing.

He maintained that by employing mobile meter reading, we are now able to get break-up of losses, including theft and technical losses on important consumer categories.