Download - Lahore Electric Supply Company Limited
Lahore Electric Supply Company Limited2nd Workshop on Power Sector Reforms
11th & 12th November | 2010WAPDA House Auditorium Lahore
Lahore Electric Supply Company Limited
SCHEME OF PRESENTATION
Service TerritoryConsumer ProfileStakeholdersCompany Level KPIs & InitiativesStakeholders’ Major Obligations as per Performance ContractPerformance Management SystemPerformance Contract & Its EffectivenessReview of KPIs for 1st Quarter, ending September 2010AMR Pilot Project – At Consumer EndBenefits of AMR Pilot Project AMR Project – RequirementsFuture AMR Projects: -
AMR at CDP, GRID, FEEDERAMR on RF Mesh at Consumer End
Lahore Electric Supply Company Limited
SERVICE TERRITORY
Sheikhupura
SheikhupuraNankanaNankana
0.40 M0.40 M
0.41 M0.41 M
0.38 M0.38 M
0.11 M0.11 M
1. 91
M1. 91
M
FESCO
GEPCO
MEPCO
Lahore Electric Supply Company Limited
Consumers
Revenue
Category wise Comparison Ending JUN-2010
Lahore Electric Supply Company Limited
Category wise Comparison Ending JUN-2010
Revenue
Consumption
Lahore Electric Supply Company Limited
Stakeholders
Customers Employees SuppliersContractorsRegulatorGovernmentLendersCommunity
Lahore Electric Supply Company Limited
Company Level KPIs & Initiatives
S# Category Wise KPIs Weight Initiative 1 Operational & Commercial Performance 40% AMR, ERP, SBU
Line Losses (Transmission & Distribution) 15% AMR (CDP, Grid, Feeder)
Collection Ratio 15% CIBS/Online Banking
Transformer Failure Rate 2% Oracle MM
Line Failure Rate - Below 20 minutes 2% AMR, Call Center
Line Failure Rate - Above 20 minutes 2% AMR, Call Center
Defective Meters 4% CIBS/AMR (Cons. End)
2 Financial Performance 20% Oracle Financials, CIBS,SBU
3 Capital Expenditure Project Implementation 15% Oracle Financials & Oracle Projects , MM
4 Customer Relations Management 5% CIBS, Call Center
5 Human Resource Management 10% Oracle HRMS, BPR, JDs & KPIs
6 Employee Safety 10% Safety Stock from Oracle MM, Workshops/Train.
Operational & Commercial Performance 40%
Line Losses 15%Collection Ration 15%Transformer Failure Rate
2%Line Failure Rate – Below 20 Minutes 2%Line Failure Rate – Above 20 Minutes 2%Defective Meters 4%
[AMRCDP, GRID, FEEDER
Oracle ERP (MM)
CIBS, AMR (Cons. end)
CIBS/Online Banking
AMR(CDP,GRID,FEEDER)
Call Center
SBU
Financial Performance 20%Cash – In – Transit 8%Operation & Maintenance 12%
ERPOracle Financials
CIBSCustomer Info & Billing System
SBUStrategic Business Unit
Capital Expenditure Project Implementation 15%
Capitalization (A-90 Form) 5%Capital Expenditure 10%
• STG 5% • DOP 2% • ELR 2% • RE 1%
ERPOracle Financials
ERPOracle Projects
ERPOracle MM
Customer Relations Management 5%
New Connection 2%Customer Facilitation 1%Efficiency of Supply Complaints Resolution 1%Efficiency of Billing Complaints Resolution 1%
CIBSCustomer Info & Billing
System
Call Center(118)
Human Resource Management 10%Officer’ Strength - Occupancy Ratio 2%Staff’ Strength - Occupancy Ratio 2%Resolution of Disciplinary Cases 2%%age of Officers Trained 2%%age of Staff Trained 2%
ERPOracle HRMS
Review of Business Processes,JDs, KPIs
Employee Safety 10%Safety Policy & Trainings,
Awareness WorkshopsERP
Monitoring of Safety Items Oracle MM
Lahore Electric Supply Company Limited
Stakeholders’ Major Obligations- As per Performance Contract
Full Corporate Autonomy in their business & commercial operation.No Interference in Companies OperationsSupport in clearing the outstanding dues relating to GOP & Govt. of PunjabEnsure Timely Implementation of TariffAdhere to Regulatory Standards & Procedures regarding tariff adjustmentsProvide Security to Employees where law and order is serious concernSupport to obtain soft long term bilateral and multilateral external financial assistance
GOP Support & Obligations
NEPRA ObligationsTimely Determination of TariffSustainable Competitive Power MarketMonitoring of Companies PerformanceEnsure Consumers’ Interests
Company Obligations
Employee Obligations
Implement Approved Strategic Business PlanSet Performance TargetsReview of Performance Targets by BODEstablish Performance Monitoring & Control MechanismAlign the HR Policies with Performance ContractHR Development w.r.t. Performance Contract
Proactive towards JobEfficient use of available resourcesAct as Custodian of the Assets of the Company
Lahore Electric Supply Company Limited
Performance Management SystemCascading of Performance Contract
Review of Job Descriptions (JDs)
Linkage of KPIs with Proposed JDs
Signing of Revised / New Contracts
Revised HR Polices / Procedures
Targets Setting
Performance Evaluation Criteria
Rewards & Penalties
Business Process Re-engineering Operation &Customer Services
Financials
Human Resource
Projects
Employee SafetyCasc
adin
g of
Per
f. Co
ntra
ct
Org
aniz
ation
Dev
elop
men
t
InformationSystem
Lahore Electric Supply Company Limited
Performance Contract & Its Effectiveness
MW&P Vs CEO
CEO Vs Functional Heads
Functional Heads Vs SEs
SEs Vs DCM DDT XEN
XEN Vs SDOs
SDOs Vs LSs Maintenance Recovery Meter Reading Complaint
Individual Employee Level
• Very Good Tool to Align All the Employees to the Company Objectives & Targets• For Its Effective Implementation, Job Description of Each Employee Needs to be Reviewed & Related KPI should be embedded in Job Description.• USAID/IRG Has Been Requested to Provide Assistance for Development of Performance Measurement System
• Very Good Tool to Align All the Employees to the Company Objectives & Targets• For Its Effective Implementation, Job Description of Each Employee Needs to be Reviewed & Related KPI should be embedded in Job Description.• USAID/IRG Has Been Requested to Provide Assistance for Development of Performance Measurement System
Signed
In Progress
Lahore Electric Supply Company Limited
Performance Contract Targets & Results for 2010-11 (1st Quarter)
KPIs 2010-11Goal
1st Quarter2009-10
1st QuarterAchievement Score
Line Losses (D) 13.4% 14.9% 14.4% 7.5
Collection Ratio 93.0% 88.5% 92.82% 15
Transformer Failure Rate 3.75% 6.6% 3.84% 2
Line Failure Rate < 20 Minutes 225 310.9 304.5 1
Line Failure Rate > 20 Minutes 45.0 61.6 51.7 2
Defective Meters (7-12 months as % of total defective)
5.0% 26.16% 30.52% 0
Total Score 40 27.5 27.5
Operational & Commercial
69%
Lahore Electric Supply Company Limited
Financial Performance
KPIs 2010-11Goal
1st Quarter2009-10
1st QuarterAchievement score
Cash In Transit (Monthly Average) 9.0% 9.21% 5.96% 8
O & M Expenses (Rs./ kWh) 0.77 0.58 0.59 12
Total 20 20 20
Performance Contract Targets & Results for 2010-11 (1st Quarter)
100%
Lahore Electric Supply Company Limited
Capital Expenditure Project Implementation
KPIs 2010-11Goal
1st QuarterAchievemen
tscore
Capitalization (A-90) 80% 79% 2.5
Capital Expenditure
STG 90% 90% 3.75
Distribution of Power 90% 90% 1.5
Energy Loss Reduction 90% 90% 1.5
Rural Electrification 90% 90% 0.75
Total 15 10 10
Performance Contract Targets & Results for 2010-11 (1st Quarter)
67%
Lahore Electric Supply Company Limited
KPIs 2010-11Goal
1st Quarter2009-10
1st QuarterAchievement Score
New Connection 100.00% 99.61% 97.79% 1.5
Customer Facilitation 96.00% 95% 95.00% 1
Efficiency of Supply Compliant Resolution 100.00% 100.00% 100.00% 1
Efficiency of Billing Complaint Resolution 100.00% 100.00% 100.00% 1
Total 5 4.5 4.5
Customer Relations Management
Performance Contract Targets & Results for 2010-11 (1st Quarter)
90%
Lahore Electric Supply Company Limited
Human Resource ManagementKPIs 2010-11
Goal1st Quarter
Achievement Score
Officers’ Strength – Occupancy Ratio 95.33% 96.65% 1.5
Staff Strength – Occupancy Ratio 79.33% 81.97% 1.5
Resolution of Disciplinary Cases 80.00% 74.88% 0.5
% of Officers Trained 24.86% 13.38% 2
% of Staff Trained 12.28% 13.75% 2
Total 10 7 7
Employee SafetyKPIs 2010-11
Goal1st Quarter
Achievement Score
No. of Accidents – Fatal 0 0 0
No. of Accidents – Non Fatal 24 3 0
Performance Contract Targets & Results for 2010-11 (1st Quarter)
70%
Internet(DSL)
AMR Server
Server at America
InternetGateway
LESCO Shad Bagh Sub Division Office
Delhi Gate-Feeder
AMR Pilot Project
Lahore Electric Supply Company Limited
Single PhaseMeter
Three PhaseMeter
MDI
FireflyRepeater
Mesh
Lahore Electric Supply Company Limited
Installation of AMR Meters On 11-KV Delhi Gate-3 Feeder
10 No. General Duty Distribution
T/F
48 No. Independent T/F
11 KV Dehli Gate-3 Feeder from 132 KV Badami Bagh G/S
48 No. Domestic
136 No. Industrial
B-1
156 No. Commercial
9 No. IndustrialB-2
Note: - All the AMR Meters are functioning
properly
Note: - All the AMR Meters are functioning
properly
1 No. B-3 Connection
Lahore Electric Supply Company Limited
Benefit of AMR Pilot Project
Months %age Line Losses
[Apr-08 to Mar-09] Before Installation of AMR Meters {12-Months} 13.2%[Apr-2009 to Mar-2010] After Installation of AMR Meters{12-Months} 4.4%
AMR Project – Requirements
Lahore Electric Supply Company Limited
Description
Hardware1. Meter compatible with utility software2. Modem / Gateway3. Server Machines
Communication Network Public GSM Network / LESCO WAN
Software Multivendor compliant
Human Resource Training & Motivation
Project Team Dedicated preferably external hiring
Lahore Electric Supply Company Limited
AMR Proposed Project at CDP, GRID, FEEDER
Modem
LESCO MIS
LESCO Grid Station
Transmission Lines 132KV
Feeders Lines 11KV
MIS Server
AMRServer
GPRS CloudWith VPN
TCP/IP CloudWith VPN
LESCONetwork
LESCO USERLESCO UserLESCO User
NEPRA
FireflyRepeater
Wireless
Wireless
LESCO Sub Division/Division/RO Office
Gateway
Router
LESCONetwork
Wi-Fi
LESCO MIS
AMRServer
BillingServer
Gateway
Router
LESCO Sub Division/Division/RO Office
Ethernet
Lahore Electric Supply Company Limited
AMR Future Strategy on RF Mesh at Consumer End
Firefly
Single PhaseMeter
Three PhaseMeter
MDI
Single PhaseMeter
Three PhaseMeter
MDI
Regulatory Authority
MW&P
LESCO Office/User
LESCO Office/User
Financial Summary – 1st Quarter, 2010
Lahore Electric Supply Company Limited
Description Sep-10Rs./kWh PPP – Unadjusted 5.63PPP – Adjusted 6.65Distribution Margin 0.56Prior Period Adj. 0.91Total 8.11Actual Revenue 10.91Variance, Rs/kWh 2.79Income Statement Summary (Mln Rs.) Sales Revenue 35,969+ GOP Subsidy 11,299+ Other Operating Inc. 203- PPP 28,815- Operating Expenses 3,118+ Non-operating Inc. 874- Fin. & other Exp. 38EBT (with PYA) 16,374Taxes Net Income 16,374
Lahore Electric Supply Company Limited
Thanks
RECORDED LOAD OF DIFFERENT CATEGORIES OF 11KV FEEDERS UNDER LESCO FROM DEC-2009 TO JUNE-2010
Lahore Electric Supply Company Limited
# FEEDERS CATEGORYDec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Load in MW
1 Dedicated Industrial Load 621 527 532 541 552 567 569
2 Dominating Industrial Load 301 299 320 400 449 503 506
3 Commercial Load 185 189 192 202 251 306 309
Sub Total 1107 1015 1044 1143 1252 1376 1384
4 Agricultural Load 140 139 149 253 211 199 202
5 Domestic Load 940 873 915 1357 1429 1650 1695
6 Exempted Load 28 20 19 21 23 37 39
Grand Total 2215 2047 2127 2774 2915 3262 3320
* Tentative load required for Industrial & Commercial Sectors with zero load shedding round the clock.
ADDITIONAL LOAD REQUIRED FOR ZERO LOAD SHEDDING ON DEDICATED & DOMINATED INDUSTRY
Lahore Electric Supply Company Limited
PEROID
MAX. LOAD (MW)
DRAWN BY LESCO
LOAD MANAGEMENT QUOTA (MW)
INERRUPTIONS 1 HOUR EACH TO BE CARRIED OUT Last year
Quota
* Required Load for 2010-11
Proposed Quota
Dec-09 2025 675 385 290 04 Hrs closure of Market Feeders04 Hrs closure of Flour Mills Feeders08 Hrs closure of T/Well Feeders04 Hrs closure of Urban Domestic Feeders08 Hrs closure of Rural Domestic Feeders
Jan-10 1887 675 365 310
Feb-10 1939 675 388 287
Mar-10 1974 1200 440 760 09 Hrs closure of Market Feeders09 Hrs closure of Flour Mills Feeders12 Hrs closure of T/Well Feeders09 Hrs closure of Urban Domestic Feeders12 Hrs closure of Rural Domestic Feeders
Apr-10 2229 1260 465 795
May-10 2479 1260 785 475 04 Hrs closure of Market Feeders04 Hrs closure of Flour Mills Feeders08 Hrs closure of T/Well Feeders04 Hrs closure of Urban Domestic Feeders08 Hrs closure of Rural Domestic Feeders
Jun-10 2665 1155 671 484* For zero load shedding to industrial sector in LESCO areas.
ADDITIONAL LOAD REQUIRED FOR ZERO LOAD SHEDDING ON COMMERCIAL, DEDICATED & DOMINATED INDUSTRY
Lahore Electric Supply Company Limited
PEROID
MAX. LOAD (MW)
DRAWN BY LESCO
LOAD MANAGEMENT QUOTA (MW)
INERRUPTIONS 1 HOUR EACH TO BE CARRIED OUT Last
year Quota
Required Load for 2010-11
Proposed Quota
Dec-09 2025 675 460 215 4 Hrs closure of Flour Mills Feeders. 08 Hrs closure of T/Well Feeders.04 Hrs closure of Urban Domestic Feeders.08 Hrs closure of Rural Domestic Feeders
Jan-10 1887 675 430 245
Feb-10 1939 675 429 246
Mar-10 1974 1200 515 685 09 Hrs closure of Flour Mills Feeders. 12 Hrs closure of T/Well Feeders.09 Hrs closure of Urban Domestic Feeders.12 Hrs closure of Rural Domestic Feeders
Apr-10 2229 1260 560 700
May-10 2479 1260 820 440 04 Hrs closure of Flour Mills Feeders. 08 Hrs closure of T/Well Feeders.04 Hrs closure of Urban Domestic Feeders.08 Hrs closure of Rural Domestic Feeders
Jun-10 2665 1155 705 450
* For zero load shedding to commercial, dedicated & dominated industry in LESCO areas.
Lahore Electric Supply Company Limited
Remittance To CPPA – Current Procedure
Consumers
Collection in Bank Branches
HBL UBL ABL MCB Others
HBL ESCROW Agent
Taxes/Duties SPPs D.M. CPPA
Lahore Electric Supply Company Limited
Settlement with CPPA – Proposed Mechanism
Purchase of PowerFrom CPPA (100%)
Billing
Consumer(76%)
To GOPSubsidy (24%)
Collection inEscrow A/cDaily Basis
100% Payment to CPPA
Through L/CNet of Subsidy
L/C Arrangement (subsidy)24% GOP with CPPA
L/C Arrangement76% LESCO with CPPA
Credit Line with BanksTo meet Seasonal Variations
Limitations•Individual bank may not be able to have more exposure on power sector•Heavy collateral may be required by the bank•Additional financing cost
Taxes/Duties SPPs D.M.