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Highest ever export in goods in the month of October.

In Pakistan.
According to this report, not enough.

"...the country has an installed capacity of around 37GW and peak demand of only 25GW, although this is growing at a rate of about 5% a year. However the grid is able to handle only 22GW of power, resulting in chronic blackouts and load shedding, particularly in the summer when demand is highest...."​

 
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According to this report, not enough.

"...the country has an installed capacity of around 37GW and peak demand of only 25GW, although this is growing at a rate of about 5% a year. However the grid is able to handle only 22GW of power, resulting in chronic blackouts and load shedding, particularly in the summer when demand is highest...."​

Sir, Thank you for pointing out this serious issue.
 
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Our root problems:
No bureaucratic reform, no justice reform, policing in Punjab Sindh still same, no LG elections, no initiative on govt side to build industries and then privatize like they did with Ufone, and many more.
Turkey has about $20 billion export for month of October, which is almost our while year exports.
 
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The top issue is actually financial management of billing and recovery.

That used to be true before the famous expensive 2015 IPP frenzy, absolutely wrong in the current times.

The capacity payment is the most dominant issue right now in the power sector which outpaced other issues by a factor of 5-10X.

We have to a great degree negated/renegotiated the previous IPP deals as most of them were local, but when it comes to 2015 IPP contracts China plainly denied.

The capacity payments from roughly Rs 200b in 2016 are projected to cross Rs1.4T by 2023.



Discos’ recovery: Refreshing surprise
BR Research 06 Oct 2021

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Nepra has issued the State of Industry Report FY2021, and it is a refreshing read, for the richness of data and presentation. What is more refreshing is the remarkable turnaround in the performance of electricity distribution companies (discos). Not often does one have the chance to applaud the government on anything in the power sector. But improving the recovery rate of electricity billing by 9 percentage points in just 12 months to 97.3 percent is no small feat. Cliched as it may sound, credit where it is due.
The cumulative loss resulting from lower collection and overrun of T&D losses was brought down by Rs100 billion in FY21 – down to Rs120 billion from Rs220 billion a year ago. One giant leap seems to have made for all the steps missed in the last five years, at least in terms of collection ratio. And this is despite a 20 percent rise in average tariffs. Finally, something seems to be working. And whatever it is, must continue.
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That said, there is still ample that needs to be done on the distribution losses front – as the total T&D losses of the discos (ex-KE) stood at 17.95 percent. This is only slightly down from 18.05 percent last year, and barely different from the 10-year average of 18.5 percent. Unlike the recovery ratio - where Nepra assumed 100 percent billing collection - there is ample allowance for T&D losses.
The allowance stood at 13.5 percent for FY21, which simply means that much is already accounted for in the amount billed. The discos missed the target by 3.4 percentage points, with an impact of Rs83 billion. The financial impact of T&D losses has outdone that of collection, a first in a long time. Here is hoping, all efforts will now go in to improve T&D losses – to further bring down the loss with which the race starts.
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Power distribution in FY21 went up by 8 percent in year-on-year FY21 – which is nothing to boast of, considering the pandemic impact. Encouragingly, industrial demand went up by 16 percent year-on-year., restoring the share to 25 percent. Industrial consumers are considered the best paying ones, but even domestic billing collection surpassed industries, for the first time ever. Recovery from domestic sector is the highest among all categories at 98 percent. This is a good start and needs to be consolidated. It is never too late for reforms.

 
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That used to be true before the famous expensive 2015 IPP frenzy, absolutely wrong in the current times.

Really? You mean to tell me that line losses have been reduced, and that customers are actually paying their bills (including government departments and the military)? That is great news, if true, but it still does not explain the steadily rising circular debt.
 
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The capacity payments from roughly Rs 200b in 2016 are projected to cross Rs1.4T by 2023.
Really? You mean to tell me that line losses have been reduced, and that customers are actually paying their bills (including government departments and the military)? That is great news, if true, but it still does not explain the steadily rising circular debt.
Khata Hai Par Lagata Bhi To Hai
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Really? You mean to tell me that line losses have been reduced, and that customers are actually paying their bills (including government departments and the military)? That is great news, if true, but it still does not explain the steadily rising circular debt.

Sir please read the article I posted. Everything is in there. Its a summary of NEPRA report.

From the article

'The cumulative loss resulting from lower collection and overrun of T&D losses was brought down by Rs100 billion in FY21 – down to Rs120 billion from Rs220 billion a year ago.'

Now in comparison to capacity payments, which is going upwards steeply as more and more of these IPP' s signed under 2015 policy come online.

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Comparing both figures, which one is the bigger menace.

And a point to add is most of these recovery T&D losses are covered by Nepra ( allowed upto a limit for a long time and already passed down to consumer), the greatest component of circular debt is capacity payments which are not. ( The base tariff increase in the last 3 years only covered a small fraction of these payments). Thus the IMF repeated pressure to increase the base tariff further.

Rs 900b past year to 1.45T in 2023 comes to around 8-12Rs per unit.
 
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Sir please read the article I posted. Everything is in there. Its a summary of NEPRA report.

I did read it. Close to a fifth of the power still goes missing and there is no mention of the biggest laggards in paying their bills on time at all. What is more, the atrocious practice of making the honest private bill payers responsible for the power stolen by others is mentioned as something to be lauded, which it most definitely is not. Hence my earlier comment. The summary is patently dishonest and tries to fool the easily misled, I am sorry to say.
 
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I did read it. Close to a fifth of the power still goes missing and there is no mention of the biggest laggards in paying their bills on time at all. What is more, the atrocious practice of making the honest private bill payers responsible for the power stolen by others is mentioned as something to be lauded, which it most definitely is not. Hence my earlier comment. The summary is patently dishonest and tries to fool the easily misled, I am sorry to say.

Summary is based on NEPRA report. NEPRA reports is the most unbiased and accurate report.

What you mention about abit less than 1/5th (17.95%) power goes missing is correct. It is mentioned in the article. And also right about the fact that this is allowed by NEPRA, the limit was 18% for years now it has been fixed at 13.5% ( in order to compel the distributors to further reduce this loss). This is included in the tariff for decades.

To further comment on the above point. One need to understand that no power transmission system is 100% efficient. Most of the transmission systems in developed world efficiency falls in 90's %. This is due to our not so optimal transmission system, quality of equipment, wires, transformer efficiency etc. It has improved slightly by 0.1% last year. This requires massive investment in the local house to house grid.

Please don't confuse it with people not paying bills, that is the recovery head. Which has shown massive improvement of 9% and stands at 97.3% recovery rate.


Keeping this in mind if you go through my previous post. The overall losses under Recovery head and T&D head stand at Rs120b a Rs100b improvement over previous year.

I also mentioned why this does not contribute much to circular debt as T&D at 18% is already built into tariff for decades. Yes there is a need to improve the efficiency of Discos to developed world standard and take it to 90's. Most of our regional countries are not far off from us in this regard.

Now if you compare the amount under capacity payment which is close to a trillion rupees as of now, these recovery losses are a small fraction in comparison.

Before 2016 our Recovery losses and T&D overruns were more than capacity payments.
 
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Summary is based on NEPRA report. NEPRA reports is the most unbiased and accurate report.

What you mention about abit less than 1/5th (17.95%) power goes missing is correct. It is mentioned in the article. And also right about the fact that this is allowed by NEPRA, the limit was 18% for years now it has been fixed at 13.5% ( in order to compel the distributors to further reduce this loss). This is included in the tariff for decades.

To further comment on the above point. One need to understand that no power transmission system is 100% efficient. Most of the transmission systems in developed world efficiency falls in 90's %. This is due to our not so optimal transmission system, quality of equipment, wires, transformer efficiency etc. It has improved slightly by 0.1% last year. This requires massive investment in the local house to house grid.

Please don't confuse it with people not paying bills, that is the recovery head. Which has shown massive improvement of 9% and stands at 97.3% recovery rate.


Keeping this in mind if you go through my previous post. The overall losses under Recovery head and T&D head stand at Rs120b a Rs100b improvement over previous year.

I also mentioned why this does not contribute much to circular debt as T&D at 18% is already built into tariff for decades. Yes there is a need to improve the efficiency of Discos to developed world standard and take it to 90's. Most of our regional countries are not far off from us in this regard.

Now if you compare the amount under capacity payment which is close to a trillion rupees as of now, these recovery losses are a small fraction in comparison.

Before 2016 our Recovery losses and T&D overruns were more than capacity payments.

I appreciate the effort to provide explanations, but please allow me illustrate the issue with a small question: The recovery head shows a "massive improvement" and stands at 97.3% recovery rate. Does this figure include delinquent government and military accounts?
 
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