K-Electric Tops NEPRA’s Performance Evaluation Rankings in Sindh

K-Electric has overtaken all other power distribution companies (DISCOs) in Sindh by significantly improving its various performance indicators, emerging as the best-performing entity among its counterparts in the province.

This learning has come to light through the State of Industry (SOI) report 2021-2022 which was published recently by the National Electric Power Regulatory Authority (NEPRA).

According to the SOI report, KE has overachieved its transmission & distribution (T&D) losses reduction benchmark set by the regulations for the year. In sharp contrast, other power distribution companies in the province namely Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) continue to show little or no progress towards curbing their T&D losses or improving their service.

As highlighted in the report also publicly available on the NEPRA website, HESCO’s actual T&D loss percentages during FY 20-21 and FY 21-22 remained at 38.55 percent and 32.88 percent respectively while the allowed percentage by NEPRA was 21.29 in FY 20-21 and 19.07 FY 21-22. On the other hand, SEPCO’s actual T&D loss percentages during FY 20-21 and FY 21-22 remained at 35.27 and 35.62 respectively against the allowed percentage of 25.06 in FY 20-21 and 17.41 in FY 21-22.

Meanwhile, KE has significantly reduced its T&D loss percentages, its actual T&D loss percentage during FY 20-21 and FY 21-22 remained at 17.54 and 15.35 against allowed percentages of 16.80 in FY20-21 and 15.95 in FY21-22 which means that KE has overachieved its T&D loss reduction target for the year.

It was further revealed in the report that because of these high transmission and distribution loss percentages, HESCO and SEPCO incurred a tremendous loss in the last couple of years alone. for FY 20-21 and FY 21-22, HESCO has incurred Rs. 22.84 billion and Rs. 45 billion worth of losses respectively. Meanwhile, SEPCO incurred a loss of Rs. 10.018 billion in FY 20-21 and a whopping Rs. 43.7 billion in FY 21-22.

Furthermore, KE’s bill recovery ratio for the past 5 years also remained much higher than the rest of the power distributors in Sindh and has remained at 96.69 percent for the year while HESCO’s and SEPCO’s recovery ratio could not exceed 73.72 percent and 63.78 percent for FY21-22.

Moreover, KE has energized over 1.15 million new connections in the last 05 fiscal years meanwhile HESCO and SEPCO have energized 0.14 million and 0.07 million connections respectively.