LESCO Fails To Achieve NEPRA-Determined 2 Percent Loss Reduction Target


Lahore Electric Supply Company (Lesco) has failed to achieve 2 percent loss reduction target that was determined by Nepra in its previous MYT, due to its inability of materialising Rs30 billion ADB funds for the AMI meter project, as the regulator approved Rs107.307 billion new five years investment plan for the company.

In its assurance in the issue of Growth strategy recorded by Lahore Electric Stock Organization Restricted (Lesco) for MYT Levy Control Period from FY2023-24 to FY2027-28, NEPRA has permitted a venture of Rs 64,130 billion from the LESCO own assets, while Rs 43.177 billion through purchaser supporting. LESCO has looked for endorsement for venture prerequisite of Rs. 16,184 million for STG (Extension and Recovery) project, which was permitted by NEPRA.

The administrative has requested Rs. 19,998 million in the head of Energy Misfortune Decrease (ELR) including 1,425 million for Airiel Pack Link (ABC) program. The asserted sum was permitted by the controller in the growth strategy. The organization asserted Rs. 46,713 million under the head of Conveyance of Force (DOP) program, which incorporates Rs. 43,177 million connected with customer supporting while Rs. 3,536 million will be funded from own assets. The Authority is of the assessment that DOP program is vital in light of the fact that its motivation is to meet the future burden development and arrangement of power administrations to new customers. The customer development rate estimated by LESCO is around 5%.The controller has permitted venture of Rs. 46,713 million as guaranteed by LESCO for DOP program and it is being permitted to guarantee convenient help conveyance to new purchasers.

On the LESCO guaranteed cost of Rs. 8,906 million in the head of AMI/Savvy Energy Meters, the Power saw that AMI project with distant disengagement highlights at buyer level pointing 50 feeders having most noteworthy misfortunes is fundamental for LESCO to accomplish the NEPRA decided focuses of T&D throws. Also, LESCO was permitted a speculation of 30 billion rupees for AMl project in MYT redetermination dated 18-9-2017, in any case, LESCO couldn’t emerge this ADB financed project. This 30 billion undertaking was pointed toward accomplishing 2% misfortune decrease. Keeping in view the significance of AMI project in modernization of LESCO’s framework subsequently getting business enhancements organization, the guaranteed speculation of Rs. 8,906 million for AMI project is being permitted to LESCO. According to the LESCO guarantee the speculation will bring a saving of 162.62 GWh.

LESCO asserted cost of Rs. 17,553 million in the head of others Practical Improvement. Under this head, LESCO had introduced an arrangement to give 526 vehicles (700CC to 1800 CC) to its grade 17 or more officials. The superseding motivation behind this strategy is to work with the officials by giving them vehicles under joint possession for official and individual use. This drive will be a fascination for the officials for getting vehicles, empowering them to serve the organization productively and successfully. The officials will involve vehicles for true use as primary goal while for individual use too. It will apply to all officials (BPS-17 or more) aside from advisors and deputationists. Anyway the case was dismissed by the Power saying that the controller is of the assessment that under winning financial circumstance such costs should be kept away from.

To the extent that T&P/wellbeing gear, Transformer Studio and functional vehicles are concerned these are vital for guaranteeing security of staff and doing routine fills in according to somewhere safe and secure guidelines. Additionally, SCADA, GIS Planning, ERP are likewise significant for framework tasks and resource the board particularly considering Business sector Opening under CTBCM system. Further, the Power noticed that the memorable use of interest in others head which included T&P for wellbeing, ERP, functional vehicles, Workplaces and furniture, structures and common works is in excess of 90%. It is critical to take note of that for FY 2022-23 the misfortune target permitted to LESCO is 8%. Additionally, it is noticed that by Power that the real misfortunes of LESCO for FY2021-22 are 11.52% against the endorsed number of 9.08%. LESCO cleared up for the Power that the justification behind deviation from Power’s supported T&D misfortune targets is non-execution of AMI project as 2% decrease was visualized by execution of AMI project. Besides, the credit endorsed for AMI undertaking of LESCO has been dropped by ADB.

The Transmission Misfortunes permitted to LESCO during FY 2022-23 are 1.75%. The transmission misfortune focus for 1 year of MYT control period for example FY 2023-24 is accepted same as 1.75% with by and large lessening of 0.3% in going before long stretches of the MYT control period in accordance with the entries of LESCO. The Dispersion Misfortunes permitted to LESCO during FY2022-23 are 6.25% which incorporate 4.10% of H.T/11 kV misfortune and 2.15% of L.T throws. This target additionally contained the 2% decrease in dispersion misfortunes because of the AMI project. Be that as it may, because of piece of venture, the proposed decrease of 2% couldn’t be accomplished. Accordingly, the Authority has taken beginning stage of 8.25% as opposed to 6.25% for dispersion misfortunes because of non-execution of AMI project.

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