2ND WORKSHOP ON POWER SECTOR REFORMS
AT LAHORE ON 11TH & 12TH NOVEMBER 2010
OVER VIEW
• HESCO has now been bifurcated in to HESCO (modified) and
SEPCO (Sukkur Electric Power Company Ltd.) a Newly created
Company vide Notification No. MDP/GM/HR/Dir/( O&M)
/(PEPCP) /1632-99 dated 26-07-2010. The legal process of
bifurcation is in progress.
• The Distribution System of the HESCO (modified) is consist of
three Operation circles, namely:
– Hyderabad –I.
– Hyderabad –II.
– Nawabshah.
• The Distribution System of the SEPCO is also consist of three
Operation circles, namely:
– Sukkur.
– Larkana.
– Dadu.
• The registration of SEPCO under the Companies ordinance 1984
is under process.
HESCO COMMAND AREA
* JACOBABAD
* SHIKARPUR
 LARKANA
* LARKANA
* GHOTKI
 SUKKUR
* SUKKUR
* KHAIRPUR
 SERVICE AREA

OPR. CIRCLES

GSO CIRCLES

DISTRICTS
=

CUSTOMERS
= 1,516,630
* DADU
 DADU
* N.FEROZ

NAWABSHAH
* N/SHAH
* SANGHAR
* JAMSHORO
 CIRCLE-II
HYDERABAD
 CIRCLE - I
HYDERABAD
* HYDERABAD
* M.P.KHAS
* THAR
* THATTA
* BADIN
ARABIAN SEA
= 126758 SQ.KM
=
=
06
02
22
H E S C O P R O F I L E SEPTEMBER - 2010
1. Area 126,758 Sq. KM
HESCO
Customers
2. Total
(Nos.)
Urban
415113
(50%)
830228
SEPCO
Rural
415115
(50%)
Transmission Lines
 132 KV (K.M) 3216.25
 66 KV (K.M)
3.
2106.56
1109.69
Grid Stations (Nos.)
4.
 132 KV
 66 KV
5. 11KV Feeders (Nos.)
6. H.T Line (K.M)
7. L.T Line (K.M)
Distribution
Transformers
25 KVA
50 KVA
8.
100 KVA
200 KVA
OTHERS
Rural
446161
(65%)
72
(19%)
301
(81%)
2334.63
1667.30
667.33
46
22
288
686402
Urban
24024
1
(35)
38
12
106
(37%)
182
(63%)
373
23930.49
13023.91
23300.72
12928.99
27976
12668
7043
2335
1346
4584
30431
13633
7661
3381
1592
4164
CUSTOMERS STATISTICS
SEPTEMBER - 2010
DESC.
NO. OF CUSTOMERS
% OF TOTAL
% OF TOTAL
% GROWTH OF
CONSUMPTI
CUSTOMERS
CONSUMPTION
ON
Domestic
1121594
80.55
54.27
9.99
Commercial
244218
16.10
6.53
8.06
1.51
19.05
0.87
Industrial
B-4
B-3
B-2
B-1
08 No.
213 No.
3976 No.
18711 No.
Total 22908 No.
Tube well
26174
1.73
13.44
1.39
Others
1736
0.11
6.71
6.06
1516630
100
100
6.55
TOTAL
KEY PERFORMACNE INDICATORS
(KPI’S)
PERFORMANCE CONTRACT 1ST
QUARTER –[JUL-SEPT.-10]
KEY PERFORMANCE INDICATORS
1st QURARTER (JUL-SEPT-2010)
HESCO
Key Performance Indicators
Weight
Target FY
2010-11
Target
1st Qtr
Actual
Weighted
Score.
(a) Operational Commercial Performance 40%
i
Line Losses
10%
33.50%
38.77%
38.67%
5.00%
ii
Collection Ratio
20%
62.37%
52.53%
45.22%
5.00%
58.52%
67.84%
72.26%
AT&C Losses
iii
Transformer Failure Rate
2%
4.50%
1.33%
1.98 %
0.00%
iv
Line Failure Rate - Below 3 minutes
2%
200
53.00
30.41
2.00%
v
Line Failure Rate - Above 3 minutes
2%
150
41.50
33.57
2.00%
4%
25.0%
6.25%
4.1 %
4.00%
Defective Meters - 7-12m as % of total
vi
Sub-total
40%
Cont….to next page
18.00%
HESCO
KEY PERFORMANCE INDICATORS
1st QURARTER (JUL-SEPT-2010)
Key Performance Indicators
Weight
Target
FY
2010-11
Target
1st Qtr
Actual
Weighted
Score
(b) Financial Performance (20%)
i
Cash in Transit (Monthly Average)
8%
10.00%
10.00%
7.31 %
8.00%
ii
O&M Expenses, Rs./kwh
12%
1.24
1.24
1.02
12.00%
Sub-total
20%
20.00%
(c) Capital Expenditure Project Implementation 15%
iii
Capitalization (Completion of A90
Form)
Capital Expenses:
Secondary Transmission & Grid Station
(STG)
Distribution of Power (DOP)
iv
Energy Loss Reduction Program (ELR)
2%
90%
25%
40.51 %
2.00%
v
Rural Electrification (RE)
1%
60%
30%
25.00 %
0.25%
Sub-total
15%
i
ii
5%
60%
10%
4.43 %
0.00%
5%
90%
25%
8.24 %
0.00%
2%
90%
25%
39.90 %
2.00%
Cont….to next page
4.25%
KEY PERFORMANCE INDICATORS
1st QURARTER (JUL-SEPT-2010)
HESCO
Key Performance Indicators
(d) Customer Relations Management: (%)
i
New Connections Nos.
ii
Customer Facilitation
Efficiency of Supply Complaint
iii
Resolution
Efficiency of Billing Complaint
iv
Resolution
Sub-total:
(e) Human Resource Management 12%
Weight
Target
FY
2010-11
1%
1%
33,522
50.00%
1%
2%
Target
1st Qtr
Actual
Weighted
Score
8,381
50.00%
6,832
50.00 %
0.25%
1.00%
95.00%
95.00%
96.00 %
1.00%
80.00%
80.00%
86.00 %
2.00%
5%
4.25%
i
Officers Strength - Occupancy Ratio
2%
91.00%
91.00%
93.88 %
2.00%
ii
Staff Strength - Occupancy Ratio
2%
90.00%
90.00%
87.01 %
1.50%
iii
Resolution of Disciplinary Cases
1%
50.00%
50.00%
12.37 %
0.00%
iv
Settlement of Audit Paras
1%
70.00%
70.00%
6.13 %
0.00%
3%
60.00%
60.00%
0.00 %
0.00%
3%
50.00%
50.00%
3.85 %
0.00%
v
vi
Percentage of Officers Trained During
the period
Percentage of Staff Trained During the
period
Sub-total:
12%
Cont….to next page
3.50%
HESCO
KEY PERFORMANCE INDICATORS
1st QURARTER (JUL-SEPT-2010)
Key Performance Indicators
Weight
Target FY
2010-11
Target
1st Qtr
Actual
Weighted
Score
(f) Employee Safety 10%
i
No. of Accidents - Fatal
6%
12
3
4
0.00%
ii
No. of Accidents - NonFatal
4%
20
5
5
2.00%
Sub-total
Total
* Result: Good
10%
2.00%
100%
52.00%*
STATUS OF VARIOUS PROJECTS:
A- PSDP WORKS
GRID STATIONS & TRANSMISSION LINES (2010-11)
(A) GRID STATIONS (PSDP)
S.No
DESCRIPTION
Total SCOPE
Nos.
COMPLETED DURING 1st
Quarter
i
NEW
08
02
ii
CONVERSION
01
90% Completed
iii
AUGMENTATION / Extension
11
02
TOTAL
20
04
143.06 KM
70% Completed
(B) TRANSMISSION LINES (PSDP)
i
NEW T/Lines
Detail Scope
B- Investment Programme
Through Donor Agencies
a. ADB
b. WB
PROJECTS UNDER ADB
DESCIPTIOIN No. of
Works
Extension
Augmentation
3
7
ELR
Total
10
SCOPE OF WORKS
1. 66 KV Badin
2. 66 KV Thari Mirwah
3. 66 KV Dokri
1. 132 KV Gambat
2. 132 KV Jacobabad
3. 132 Tando Allah Yar
4. 132 KV Tando Adam
5. 132 KV Sukkur Site
6. 132 KV Deharki
7. 66 KV Deharki
606 K.M Aerial Bundle
Cables
Replacement of Meters
121, 200
AMOUNT Completion
[US$ M]
Schedule
12.43
June, 2011.
13. 80
December,
2011.
26.23
PROJECTS UNDER The World Bank
DESCIPTIOIN
No. of
Works
New
4
Augmentation
4
Extension
1
Conversion(
from 66 KV to
132 KV )
4
Total
13
SCOPE OF
WORKS
1. 132 KV Buxapur
2. 132 KV Chamber
3. 132 KV Larkana-III
4. 132 KV Tando
Bago
1. 132 KV Phulleli
2. 132 KV N.S. Feroze
3. 132 KV Kot Diji
4. 132 KV Umar Kot
132 KV Nooriabad
AMOUNT Completion
[US$ M] Schedule
December,
2011.
26.31
Completed
December,20
11
1. Matiari
2. Samaro
3. Naukot
4. Kandiari
June, 2011
26.31
Cont: ..Next Page
PROJECTS UNDER The World Bank
DESCIPTIOIN
SCOPE OF WORKS
AMOUNT
[US$ M]
Completion
Schedule
25.00
December,
2011.
445 K.M Aerial Bundle
Cables
ELR
Replacement of Meters
90,780
Total
25.00
STOCK OF CRITICAL ITEMS
Sr.
No.
Description
Unit
HESCO
SEPCO
Total
1
25 KVA Distribution Transformers
Nos.
225
271
496
2
50 KVA Distribution Transformers
Nos.
80
51
131
3
100 KVA Distribution Transformers
Nos.
97
38
135
4
HT Steel Structures 34-8" ft
Nos.
30
161
191
5
LT Steel Structures 30" ft
Nos.
2124
1787
3911
6
ACSR Conductor Rabbit
KM
92.724
387.169
479.893
7
A.A Conductor Ant
KM
737.62
402.863 1140.483
8
11KV Wooden Cross Arms
Nos.
1355
Note:
166
The sufficient stock of critical items are available in stores as well as in pipeline. After
recession of water from the flooded areas under the Jurisdiction of SEPCO, the Power
supply will be restored.
Detail
1521
HESCO
COMPARATIVE INCOME STATEMENT
FY 2008-09 Vs. FY 2009-10 (ACTUAL)
Rs. In M
2009-10
2008-09
VARIANCE
Sales of Electricity
61,957
54,892
7,065
Cost of Electricity
59,117
45,425
13,693
Gross Profit / (Loss)
2,840
9,467
(6,627)
Operating Cost
6,293
5,362
931
Provision for bad debts
2,017
2,059
(42)
Depreciation
1,353
1,116
237
Total Cost
9,663
8,537
(1.126)
(6,823)
930
(7,753)
2,932
2,488
444
206
1,145
(939)
(4.098)
2,273
(1,825)
14
-
14
(4,111)
2,273
(1838)
-
114
114
(4,111)
2,159
(6,270)
LESS :
Operating Profit / (Loss)
Others Income
Financial Charges
Net Profit /(Loss) before Tax
Tax
Net Profit /(Loss) After Tax
Worker Profit Participation Fund
Net Profit/ (Loss) after Tax
HESCO
BALANCE SHEET AS AT 30TH JUNE
Rs. In Million
FY 2009-10
FY 2008-09
30,219
(44,560)
(14,341)
9,554
30,219
(40,449)
(10,230)
7,521
Non Current Liabilities
13,700
11,107
Current Liabilities
96,625
58,634
105,538
67,032
29,667
25,078
6
8
75,865
41,946
105,538
67,032
EQUITY AND LIABILITIES:
SHARE CAPITAL & RESERVES
Deposit for shares
Accumulated Loss
Deferred Credit
Total Equity & Liabilities
ASSETS:
Operating Assets
Long Term Loans & Advances
Current Assets
Total Assets
HESCO
LOSS ANALYSIS FY 2009-10
A- Increase in Financial FY 2009-10:
i- Net Profit and (Loss) FY 2009-10
ii- Net Profit and (Loss) FY 2008-09
iii.- Increase in Loss FY 2009-10
(Rs. 4,110.82) (M)
Rs. 2,159.33 (M)
(Rs. 6,270.15) (M)
B- Reasons for Increase in Losses:
i- IMPACT OF LOSSES OVER NEPRA TGARGET
• Total Units Purchased in FY 2009-10
8,275.02 Mkwh
• Units Lost due to excess losses 6.8% (i.e 28% to 34.80%) 562.70 Mkwh
• Revenue Loss ( 562.70 Mkwh X Rs. 11.48/kwh)
Rs. 6,459.80 (M)
C.
D.
E.
Net Profit /(Loss) FY 2009-10
Disallowed cost by NEPRA FY 2009-10
Net Profit /(Loss) after above adjustment
(Rs. 4,110.82) (M)
Rs. 6,459.80 (M)
Rs. 2,348.98 (M)