Electricity Supply & Tariffs in Pakistan: Some Issues Roland deSouza FIEEEP Electrical engineers in Pakistan need to teckle a number of problems in the public interest, including + quality of electricity supply in the country + confusion in tariffs and their application + corruption in utility componies + dismal performance of the Electrical Inspector This can be done quite effectively through the IEEEP, if we have the courage! The electricity scenario in Pakistan leaves much to be desired: + Supply quality and availability is unreliable, with consequent problems for domestic, industrial, and commercial consumers + Safety standards are almost non-existent and not implemented ~ Technical expertise and workmanship is poor + Electrical installations and manufactured equipment, built to reduce initial costs, are of unacceptable standards ~ Corruption in electricity related agencies, like the WAPDA, KESC, and Electrical Inspector's office has reached epidemic proportions. As a good professional body of electrical engineers in Pakistan, we have a duty to our fellow citizens to tackle the problems and evils in our field, and make the country a safer and better place to live. Given below are some of the author's ideas on random issues experienced over the past 25 years UTILITY TARIFFS Although an attempt was made in the 80's to unify and rationalise the tariffs of WAPDA and KESC by providing common rates where possible, many differences still exist, causing confusion and dissatisfaction among consumers. Some of them are + Maximum Demand Integrating Period in WAPDA areas is 30 minutes, while in KESC areas it is 15 minutes: the shorter integrating time leads to higher maximum demand charges in the KESC supply jurisdiction. At one time, KESC corried out a study, as a group of consumers had complained to the government, and projected that there would be a substantial loss in their gross billing if the integrating time was increased from 15 to 30 minutes. Adecision on this matter is still pending with the government, and must be resolved. + Tariffs for Resale of Electricity: Bulk consumers under Tariff C-1 (400V) and Tariff C-2 (11kV) are permitted to resell electricity to other consumers within their distribution area. Industrial Tariffs B-1 (400V), 8-2 (400V), 8-3 (11kV) and Commercial Tariff A-2 (400V) specifically forbid resale. There are a number of commercial buildings (some constructed by State Life Insurance Corporation, National Insurance Corporation, Bahria Foundation, and the like) where offices and floors are given on rent. In the KESC area, Tariffs C-1 & C-2.are available for such buildings, so that sub-meters can be installed for resale to tenants. But in WAPDA areas, no transparent or uniform policy exists and commercial buildings are varyingly given Tariff “A-2 only, or Tariffs A-2/8-3, or Tariff B-3 only (see Annexure-1) which they resell to their tenants. Thus much confusion is created while designing the installations (see alternatives in Annexure-2) which causes a waste of resources that Pakistan can ill afford, and creates opportunities for corruption of WAPDA officials. A clear written policy is needed, including an examination of the lawfulness of reselling electricity + Power Tariffs for Commercial Premises: In WAPDA areas, three-phase (400V) loads in commercial establishments (lighting being metered under Tariff A-2) are allowed to be metered under Tariffs B-1, or B-2, or B-3. This facility, which generally results in a lower overall costs to smaller commercial establishments, is not available in KESC supply areas. CORRUPTION IN WAPDA & KESC As both the utility companies are marketing a scarce commodity, the opportunities to make illegal money are legion + New connections/extension in load: Tt has become virtually impossible to obtain/extend an electric supply connection without paying bribes to a number of KESC/WAPDA officials. Owner of projects some times find it difficult to includé these "kickbacks" in their accounts, and it is now becoming more common for multinationals and government corporations to make the securing of electricity supply a BOQ line item (rates range from Rs. 1500- 3000 per kW) in the electrical contractor's tender, thus turning contractors into virtual “dalals*. It has also become common to appoint Electrical Consultants who have the right “contacts” in WAPDA/KESC and can “arrange” for the sanction of load.+ Tampering with meters: With the rising costs of electricity, more and more utility company staff is involved with helping and encouraging consumers to “fix their meters in order to reduce their bills. This ranges from fiddling with the MDI register, to under-reading the kWh consumption, to providing multiple meters in one residential premises to take advantage the slab rates of Tariff A-1, and other such schemes. Collectively known as “line losses", this theft of electricity has reached alarming proportions, is threatening the viability of the utility companies, and is actually being paid for by honest consumers in the form of higher electricity rates. ~Bhatta fo line/repair staff: Especially during times of rain emergency and summer peaks, breakdowns of lines, transformers, etc. in many areas are not attended by staff without payment of “extortion” money from consumers. ~ Quality of installations in KESC and WAPDA systems is deplorable. The installation and maintenance of overhead lines, underground cables, switchgear, transformers, etc. is done on a “chaltey-ki-nam-gari” basis. Pride of performance is absent. + Over-staffing: The number of employees is far in excess of those actually required for efficient operation, maintenance, and planning. As “an idle man is a devil's workshop", detrimental union activity proliferates. In keeping with the general moral standards of the country, a multitude of problems exist, including issues like award of contracts, theft, etc. and are being tackled by citizen's groups like Concerned Citizens Association and KESC Shareholder’s Association. Engineers need to get involved. CORRUPTION IN THE ELECTRIC INSPECTOR'S OFFICE The theoretical role of the Electric Inspector, as a functionary of the Federal or Provincial Government, is to monitor implementation of the “Electricity Act, 1910", "Electricity Rules, 1937", and related legislation, and to ensure that electrical installations are safe for the public. The actual functioning of the offices only ensures that the concerned officials make illegitimate money and harass electrical consumers and contractors. The Electrical Inspectors earn “kickbacks” in the following areas, among others: + Approval of Electrical Installations: The going rate of bhattais Rs. 100/KVA (KW..2) of transformer or generator capacity. These costs are also made line items on BOQs of électrical installation contracts.+ Issuance of Electrical Contractor's Licence and Certificates of Competency to Wiremen and Supervisors, and their annual renewal. + Annual Inspection of Factories and other Premises: A stereo-type standard list of deficiencies is generally issued at each inspection (with a great emphasis on “earthing"), and the Owner has to "remove the deficiencies” through a Licensed Contractor: most deficiencies are “removed” through the payment of a negotiated bribe. ~ Approval/Inspection of Temporary Installations at construction sites provides a regular source of illegal money at 3-month intervals. The role of the Karachi Electrical Contractors’ Association in negotiating and settling rates of illegal gratification is also note-worthy: the majority of so- called “contractors” are of the “brief-case" variety who hang around Block 51, Pak Secretariat, and stamp/sign forms for a small fee. Tf the above were not affecting public safety, the matters would only be a part of the general atmosphere of corruption that pervades our society. But as the Electric Inspector is corrupt, incompetent, and totally unconcerned about safety, it is critical that professional and citizen's bodies get involved and force the government to take corrective action. IN CONCLUSION It is the professional duty of all electrical engineers, and especially the role of a body like the TEEEP, to protect the interests of the general public and ensure that standards, practices, and inspections are carried out to the highest levels in order to provide safety from fire, shock and burns to the electricity consumer. We must monitor the performance of electricity-related agencies like the WAPDA, the KESC, and the Electrical Inspector's office to see that the law is not violated, transparency is established, and that the quality of life in the country improves, Annexure 1 & 2 (Roland deSouza is a Partner of Fahim, Nonji & deSouza, « multi-disciplinary firm of electrical and mechanical bulldng services consultants)Annexure-1 28" December, 1985 Chairman, ‘Area Electricy Board, WAPDA, Behind CDA Gtfces, Islamabad Dear Mian A. Hanif Sahib, Re: LACK OF TRANSPARENGY IN APPLICATION OF WAPDA TARIFES. “The application of WAPOA Tarls to varius projects seems to be entaly atthe discretion of various officss, with th consequent problems this process generates, ‘Commerciavotice bulings have, of late, faced cifcuty in obtaining a single-tarif 14KV bul-supply under Tarif C-2. Athough te ‘majoc commercial buidings in the KESC area (Habib Bank Plaza, Dawood Cente, She! House, PNSC Gullding, ee, in Karachi) ‘seem to have no problem in operating under a Tari C-2, the comnecilloffice buirings in Islamabad and other majr cies in the \WAPDA jurisdiction are varyingly fed with Tarif 8-3, or Tart C-2, or Tarif B-3/A-7 ‘Tho buldings with an 11kVsingle-tarf,n our knowedge, ncude = World Bank Buiicing, islamabad ~ Experts Advisory Call Building, Islamabad PTC HO Bullding-A, Islamabad = PTCHG Building, ilamatad = Enercon Building lamabad = Saudi Pak Tower, Islamabad Tari 8-3 = KRU Bulding,islamagad State Life Buicing,ltamabad Tani 8-3 = _ USAID Building, Islamabad Tarif a2 = ABL Bulding, Islamabad Teri 8-3 = Sta Life Building, Lahore Tarif A2 = State Life Building, Peshawar Tait A2 ‘The recent insistence of some WAPDA offices thatthe consumer use Tarif B-W/A-2 at 1IkV doos not make sense, as ‘ola loads of under 1000KVA would require two smaller, uneconomicaly-sized vaneformers, which would load the (elteady ‘overloaded) WAPDA sysiem wit reactive power, addtional expenditure on exta MV & LV svitchgearicabling would be involved = Space requirements inthe bulding would increase changeover arrangements fr standby generators becomes complicated ‘waste of scare national esouroes resus! ‘Additonal, since Tarits 8-2 and A2 do not permit reeling of electricity, commercial premises with tenans (Ike State Life Buldings) Would not be able o sub-meter. Tan C-2 i re-saleable. We suggest that WAPDA (and KESC) establish a uniform, tranaparent poloy and publcee it widely to consumers, architects and ectical designers to reduce causion and corupton. We also suggest that Tariff C-2 be made easly availabe, ag thas been ‘he past to all mulistoreyed corimerca office buildings. In some rare cases, Tats 8-3 and A.2 are desable or metering power and lighting separataly I should bo permissible to sub- miter (Tai A-2) the ighting loads on the LV side ofa single wansformer, and subtract the energy/MD\ readings fom the Tari 8-3 ower readings onthe incoming MV sie of he same vansformer. ‘Your urgent attention to this problem is sliced, as the matte is pending on 2 number of projec in Islamabad (and other cles). Yours fatty (Ratand deSouza) for FAHIM, NANA & DESOUZA 6c. Chairman WAPDA, Lahore Federal Minister fo: Power, tsiamabad ‘Note: To date (20-287), no answer had been received to the above lator.puowep wnuixow ¢-E HUOL Jo vO! goad sasno> (eiqouajesd) Z—2nn0ws93y ut jo, Bupoot sf Boer a x rparekys ‘Touomppe pub rt nes ee mon i z-9 MMOL ‘ c-a wei [] \ c-¥ sHYOL x M [7]c-8 yen wl3n 9539 wan oan asin vag 3513" Yoav vat 0008 yr1 0001 we 00% vr oe z-¥ OL so01g 184 en won zy HPL Zay me wiign-ens wiign-ens Jenod a sano ¥algn-ens sols PY ee 1 aaah temed Z=9 HCL aSian-ans f iE soos 92¢ e-aAnouseyy Z—eanouserly j-eanqowariy i SBHuIpjing |DIOWaWILUOD aqojUeYy 40} S44/40 Ey g 10! ) ajqoyuey 4Oj SJL [el ec