Transcript Slide 1
Lahore Electric Supply Company Limited
2nd Workshop on Power Sector Reforms
WAPDA House Auditorium Lahore
11th & 12th November | 2010
SCHEME OF PRESENTATION
Service Territory
Consumer Profile
Stakeholders
Company Level KPIs & Initiatives
Stakeholders’ Major Obligations as per Performance Contract
Performance Management System
Performance Contract & Its Effectiveness
Review of KPIs for 1st Quarter, ending September 2010
AMR Pilot Project – At Consumer End
Benefits of AMR Pilot Project
AMR Project – Requirements
Future AMR Projects: AMR at CDP, GRID, FEEDER
AMR on RF Mesh at Consumer End
Lahore Electric Supply Company Limited
SERVICE TERRITORY
FESCO
Nankana
GEPCO
0.41 M
0.38 M
MEPCO
Lahore Electric Supply Company Limited
Category wise Comparison
Ending JUN-2010
Consumers
Revenue
Lahore Electric Supply Company Limited
Category wise Comparison
Ending JUN-2010
Consumption
Revenue
Lahore Electric Supply Company Limited
Stakeholders
Customers
Employees
Suppliers
Contractors
Regulator
Government
Lenders
Community
Lahore Electric Supply Company Limited
Company Level KPIs & Initiatives
S#
Category Wise KPIs
1
Operational & Commercial Performance
Line Losses (Transmission & Distribution)
Collection Ratio
Transformer Failure Rate
Line Failure Rate - Below 20 minutes
Line Failure Rate - Above 20 minutes
5% Defective •Meters
DOP 2%
• ELR
Financial Performance
Weight Initiative
40%
AMR, ERP, SBU
Operational
& Commercial
Capital Expenditure
Project
15%
Customer
Relations
Management
5%
Human
Resource
Management
10%
Financial
Performance
20%
15%
Performance
40% 15%
Implementation
AMR (CDP, Grid, Feeder)
CIBS/Online Banking
2%
2%
2%
4%
20%
Line Connection
Losses
New
Cash
Capitalization
Officer’
– InStrength
– Transit
(A-90
- Occupancy
Form)
Ratio 15%AMR, Call Center
CIBS/Online
Collection
Ration
15%AMR,10%
Operation
Capital
Customer
Staff’
Strength
Expenditure
Facilitation
&
Maintenance
- Occupancy Ratio
12%
1%
2%
Banking
Call Center
Oracle ERP
CIBS/AMR
(Cons.
End)
Transformer
Failure
Rate
2%
•
STG
2%
•
RE
1%
Efficiency
ResolutionofofSupply
Disciplinary
Complaints
CasesResolution 1%
2%(MM)
2
Oracle Financials,
SBU
CIBS
AMR
Line
Failure
Rate
–
Below
20
Minutes
2%
Efficiency
%age
of Officers
ofERP
Billing
Trained
Complaints
Resolution
1%
2%
CIBS,SBU
ERP Customer Info & Billing
Safety
Policy
&
Trainings,
System
Strategic
Business
Unit
ERP
ERP
Oracle
Financials
Call Center
3 Failure
Expenditure
ProjectItems
Implementation
15%
Oracle Financials
&
Line
Rate
Above
20ERP
Minutes
2%
%age
ofCapital
Staff
Trained
2%
Monitoring
of–Safety
Awareness
Workshops
Oracle Projects ,CIBS,
MM
Call
Center
CIBS
Oracle
Financials
Oracle
Projects
Oracle
MM
Oracle
MM
Defective
Meters
4%CIBS,Processes,
AMR (Cons. end)
4
Customer
Relations Management
5%
Call Center
Review
of
Business
ERP
Customer
Info & Billing System
(118)
5
Human Resource Management
10%
JDs, KPIs
Oracle HRMS
S
Employee Safety 10%
B
U
8%
5%
2%
2%AMR
Oracle MM
[
CDP, GRID, FEEDER
(CDP,GRID,FEEDER)
Oracle HRMS,
BPR, JDs & KPIs
6
Employee Safety
10%
Safety Stock from Oracle
MM, Workshops/Train.
Lahore Electric Supply Company Limited
Stakeholders’ Major Obligations- As per Performance Contract
GOP Support & Obligations
Full Corporate Autonomy in their
business & commercial operation.
No Interference in Companies Operations
Support in clearing the outstanding dues
relating to GOP & Govt. of Punjab
Ensure Timely Implementation of Tariff
Adhere to Regulatory Standards &
Procedures regarding tariff adjustments
Provide Security to Employees where law
and order is serious concern
Support to obtain soft long term bilateral
and multilateral external financial
assistance
NEPRA Obligations
Timely Determination of Tariff
Sustainable Competitive Power Market
Monitoring of Companies Performance
Ensure Consumers’ Interests
Company Obligations
Implement Approved Strategic Business
Plan
Set Performance Targets
Review of Performance Targets by BOD
Establish Performance Monitoring &
Control Mechanism
Align the HR Policies with Performance
Contract
HR Development w.r.t. Performance
Contract
Employee Obligations
Proactive towards Job
Efficient use of available resources
Act as Custodian of the Assets of the
Company
Lahore Electric Supply Company Limited
Organization Development
Cascading of Perf. Contract
Performance Management System
Cascading of Performance Contract
Operation &
Customer Services
Financials
Business Process Re-engineering
Review of Job Descriptions (JDs)
Linkage of KPIs with Proposed JDs
Projects
Revised HR Polices / Procedures
Information
System
Performance Evaluation Criteria
Targets Setting
Human Resource
Signing of Revised / New Contracts
Employee Safety
Rewards & Penalties
Lahore Electric Supply Company Limited
Performance Contract & Its Effectiveness
MW&P Vs CEO
CEO Vs Functional Heads
Signed
Functional Heads Vs SEs
SEs Vs
DCM
DDT
XEN
XEN Vs SDOs
SDOs Vs LSs
Maintenance
Meter
Reading
Recovery
Complaint
In Progress
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
Lahore Electric Supply Company Limited
Performance Contract Targets & Results for 2010-11 (1st Quarter)
Operational & Commercial
2010-11
Goal
1st Quarter
2009-10
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
27.5
27.5
KPIs
Total Score
40
1st Quarter
Score
Achievement
Lahore Electric Supply Company Limited
69%
Performance Contract Targets & Results for 2010-11 (1st Quarter)
Financial Performance
2010-11 1st Quarter
2009-10
Goal
KPIs
1st Quarter
Achievement
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
20
20
Total
20
100%
Lahore Electric Supply Company Limited
Performance Contract Targets & Results for 2010-11 (1st Quarter)
Capital Expenditure Project Implementation
2010-11
Goal
1st Quarter
Achievement
score
80%
79%
2.5
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
15
10
10
KPIs
Capitalization (A-90)
Capital Expenditure
Total
67%
Lahore Electric Supply Company Limited
Performance Contract Targets & Results for 2010-11 (1st Quarter)
Customer Relations Management
2010-11 1st Quarter 1st Quarter
2009-10 Achievement
Goal
KPIs
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
4.5
4.5
Total
5
90%
Lahore Electric Supply Company Limited
Performance Contract Targets & Results for 2010-11 (1st Quarter)
Human Resource Management
KPIs
2010-11
Goal
1st 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
10
7
7
Total
70%
Employee Safety
2010-11
Goal
1st Quarter
Achievement
Score
No. of Accidents – Fatal
0
0
0
No. of Accidents – Non Fatal
24
3
0
KPIs
Lahore Electric Supply Company Limited
AMR Pilot Project
Server at
America
Delhi Gate-Feeder
AMR
Server
MDI
Internet
Mesh
Single Phase
Meter
Three Phase
Meter
Gateway
Internet
(DSL)
LESCO Shad Bagh
Sub Division Office
Firefly
Repeater
Lahore Electric Supply Company Limited
Installation of AMR Meters On 11-KV Delhi Gate-3 Feeder
11 KV Dehli Gate-3 Feeder from
132 KV Badami Bagh G/S
48 No.
Independent T/F
48 No.
Domestic
156 No.
Commercial
Note: - All the AMR
Meters are functioning
properly
10 No. General
Duty Distribution
T/F
136 No.
Industrial
B-1
9 No. Industrial
B-2
1 No.
B-3 Connection
Lahore Electric Supply Company Limited
Benefit of AMR Pilot Project
Months
[Apr-08 to Mar-09] Before Installation of AMR
Meters {12-Months}
[Apr-2009 to Mar-2010] After Installation of AMR
Meters{12-Months}
%age
Line Losses
13.2%
4.4%
Lahore Electric Supply Company Limited
AMR Project – Requirements
Description
Hardware
1. Meter compatible with utility software
2. Modem / Gateway
3. 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
Transmission
Lines 132KV
LESCO MIS
NEPRA
MIS
Server
LESCO Grid Station
GPRS Cloud
With VPN
TCP/IP Cloud
With VPN
Modem
LESCO
Network
Feeders
Lines 11KV
LESCO User
LESCO User
LESCO USER
Lahore Electric Supply Company Limited
AMR
Server
AMR Future Strategy on RF Mesh
at Consumer End
Regulatory Authority
MW&P
Gateway
MDI
Wi-Fi
LESCO MIS
Wireless
Ethernet
Single Phase
Meter
Firefly
Three Phase
Meter
Router
AMR
Server
LESCO Sub Division/
Division/RO Office
LESCO
Network
Firefly
Repeater
Gateway
MDI
Wireless
Router
Single Phase
Meter
Three Phase
Meter
LESCO Sub Division/
Division/RO Office
LESCO Office/User
LESCO Office/User
Lahore Electric Supply Company Limited
Billing
Server
Financial Summary – 1st Quarter, 2010
Description
Rs./kWh
PPP – Unadjusted
PPP – Adjusted
Distribution Margin
Prior Period Adj.
Total
Actual Revenue
Variance, Rs/kWh
Income Statement Summary (Mln Rs.)
Sales Revenue
+ GOP Subsidy
+ Other Operating Inc.
- PPP
- Operating Expenses
+ Non-operating Inc.
- Fin. & other Exp.
EBT (with PYA)
Taxes
Net Income
Sep-10
5.63
6.65
0.56
0.91
8.11
10.91
2.79
35,969
11,299
203
28,815
3,118
874
38
16,374
16,374
Lahore Electric Supply Company Limited
Thanks
Lahore Electric Supply Company Limited
RECORDED LOAD OF DIFFERENT CATEGORIES OF 11KV
FEEDERS UNDER LESCO FROM DEC-2009 TO JUNE-2010
Dec-09
#
Jan-10
Feb-10
FEEDERS CATEGORY
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
1107
1015
1044
1143
1252
1376
1384
Sub Total
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
2215
2047
2127
2774
2915
3262
3320
Grand Total
* Tentative load required for Industrial & Commercial Sectors with zero load shedding round the clock.
Lahore Electric Supply Company Limited
ADDITIONAL LOAD REQUIRED FOR ZERO LOAD
SHEDDING ON DEDICATED & DOMINATED INDUSTRY
LOAD MANAGEMENT QUOTA (MW)
PEROID
MAX. LOAD
(MW) DRAWN
BY LESCO
Last year
Quota
Dec-09
2025
675
* Required
Load for
2010-11
385
Proposed
Quota
INERRUPTIONS 1 HOUR EACH TO BE CARRIED
OUT
290
Jan-10
1887
675
365
310
Feb-10
1939
675
388
287
Mar-10
1974
1200
440
760
Apr-10
2229
1260
465
795
May-10
2479
1260
785
475
Jun-10
2665
1155
671
484
04 Hrs closure of
04 Hrs closure of
08 Hrs closure of
04 Hrs closure of
08 Hrs closure of
Market Feeders
Flour Mills Feeders
T/Well Feeders
Urban Domestic Feeders
Rural Domestic Feeders
09 Hrs closure of
09 Hrs closure of
12 Hrs closure of
09 Hrs closure of
12 Hrs closure of
Market Feeders
Flour Mills Feeders
T/Well Feeders
Urban Domestic Feeders
Rural Domestic Feeders
04 Hrs closure of
04 Hrs closure of
08 Hrs closure of
04 Hrs closure of
08 Hrs closure of
Market Feeders
Flour Mills Feeders
T/Well Feeders
Urban Domestic Feeders
Rural Domestic Feeders
* For zero load shedding to industrial sector in LESCO areas.
Lahore Electric Supply Company Limited
ADDITIONAL LOAD REQUIRED FOR ZERO LOAD SHEDDING
ON COMMERCIAL, DEDICATED & DOMINATED INDUSTRY
PEROID
MAX. LOAD
(MW)
DRAWN BY
LESCO
Dec-09
LOAD MANAGEMENT
QUOTA (MW)
Last
year
Quota
Required
Load for
2010-11
Proposed
Quota
2025
675
460
215
Jan-10
1887
675
430
245
Feb-10
1939
675
429
246
Mar-10
1974
1200
515
685
Apr-10
2229
1260
560
700
May-10
2479
1260
820
440
Jun-10
2665
1155
705
450
INERRUPTIONS 1 HOUR EACH TO BE
CARRIED OUT
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
09 Hrs closure of
12 Hrs closure of
09 Hrs closure of
12 Hrs closure of
Flour Mills Feeders.
T/Well Feeders.
Urban Domestic Feeders.
Rural Domestic Feeders
04 Hrs closure of
08 Hrs closure of
04 Hrs closure of
08 Hrs closure of
Flour Mills Feeders.
T/Well Feeders.
Urban Domestic Feeders.
Rural Domestic Feeders
* 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 Power
From CPPA (100%)
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
Billing
Consumer
(76%)
Collection in
Escrow A/c
Daily Basis
Taxes/
Duties
SPPs
D.M.
To GOP
Subsidy (24%)
L/C Arrangement
76% LESCO with CPPA
L/C Arrangement (subsidy)
24% GOP with CPPA
100% Payment
to CPPA
Through L/C
Net of Subsidy
Credit Line with Banks
To meet Seasonal Variations
Lahore Electric Supply Company Limited