Intrnship Report On Wapda

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INTERNSHIP REPORT ON MEPCO (WAPDA) Marketing 2010
A Directory to the Report
Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 1

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1. Preface …………………………………………… 03
2. Acknowledgment ……………………………………….. 06
3. Dedication ……………………………………………….. 07
4. Executive Summary……………………………………… 08
5. Purpose of Study ………………………………………… 10
6. MEPCO Introduction …………………………………….. 12
a. History of MEPCO ………………………………. 13
b. Vision, Mission…………………………………… 14
7. Technical Overview………………………………………. 18
8. Organogram ……………………………………………… 20
9. Top Management………………………………………... 21
10. WAPDA Introduction ……………………………………. 26
a. History of Power Sector ……………………….. 28
b. Pakistan’s Power Sector ………………………. 29
c. Power Policy 2002 ……………………………… 31
d. Current Situation………………………………… 32
e. Demand & Supply of Electricity ………………. 35
f. Sources of Renewable Energy……………….. 38
g. Future outlooks and Scenarios……………….. 42
h. WAPDA Vision 2025 …………………………... 44
i. Energy Crises ………………………………….. 48
11. Competitors ……………………………………………… 58
12. Departments ……………………………………………. 62
13. MEPCO HR Department ……………………………… 67
14. SWOT Analysis …………………………………………… 82
15. Porter’s 05 Forces Analysis ……………………………. 86
16. PEST Analysis ………………………………………….. 88
17. My Working in MEPCO ……………………………….. 93
18. Conclusion and Recommendations………………….. 97
19. Financial Analysis ……………………………………… 101
20. References and sources used ………………………… 107
21. Annexure ………………………………………………. 108
Some words about the Report

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“Genius makes its observations in short‐hand; talent writes them out at length.”
Christian
Nevell Bovee
“Nothing has such power to broaden the mind as the ability to investigate
systematically and truly all that comes under thy OBSERVATION in life.”
Marcus Aurelius
As mentioned by the above quotations observing and on site viewing are a
very firm base for learning. We learn a lot more by seeing the theories, we read in
books, applied practically by the pros and by seeing how they actually put them to
work.
Team building and teams are an important part of the business as we see it today
and a large emphasis is given to them in the modern business world.
Organizations make systems to accomplish tasks and to increase efficiency in
their work. When it came to choosing the organization of the MEPCO became the
first thing to the mind of the team members.
The effective system at MEPCO was a piece of art and to see it in working process
was a treat itself.
It is hoped that the conducted study and the compiled report will provide a source of
comprehensive information and a complete internship report on the topic as well as
on the organization.
A Short Thanks Giving

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Absolute praise for Almighty Allah, provider of hope, guidance and knowledge
without whose constant remembrance I would not have over come my moments of
despair.
I am grateful to Allah almighty, for enabling me to fulfill this tiring, but
interesting job for the completion of my internship report.

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I want to give a special thanks to Mr. Abdul Sattar Zia Dy.Manager (OP)
who gave me their full support and guided me throughout this report and he should
be given credit on top of all for this collection of knowledge.
I like to express my gratitude to Nasir Mahmood Fani (Asstt. Manager (OP),
who helped me by providing all the needed information I needed to complete this
report. I also want to say special thanks to Mr. Imran Khan who provided me
guideness through the course of my internship.
At the end I would also like to thanks my parents who motivated me and that
motivation led to the successful completion of the report and also all my mates who
took time out of their busy lives to help me complete this report.
Dedication
I would not be going justice in presenting this internship report without
mentioning the people around me who have been inextricably related with the
completion of this report. I wish to record my honorable regards to all those who
helped a lot in completion of this report.

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I also appreciate the valuable services and moral support from my friends.
Finally I wish to place on record, my heart felt thanks, regards, and gratitude to my
parents. Their guidance support and trust enable me to through this report.
Executive summary
“Experience is not what happens to you, it is what you do with what happens to you.”
-Aldous Huxley
I judge my time spent at City Sub Division Haroonabad as being the most
productive and exhilarating experience of my corporate life. Few of the main
highlights of my work experience while at Operation Sub Division are:

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 Good Leadership
 Congenial Work Atmosphere
 Challenging Tasks Assignment
 Employee Empowerment
 Proactive Problem Resolution
Before the details description of the report I started with the summary of work I
done. The basic purpose of this summary is to given an idea about the contents and
efforts made behind the completion of the report to the reader.
It was assigned me to write an internship report of the MEPCO to view the

working environment, function, procedures and behavior of doing work. Internship
was started from ______________ and end on __________, this period was the real
experience of my life and I saw the setup, working process and formal
documentation of the MEPCO.
The MEPCO is a very big organization with several departments in working in the
head office. The human resource department which deals with the internees has
assigned me MEPCO. MEPCO gives me the opportunity to view, how the books of
accounts are prepared, how to fill the different forms, how to behave with customers
and about the record keeping. I worked in Technical section of MEPCO and learned
about distribution system of MEPCO, technical correspondence between
departments and flow of data between departments. I also learned billing system of
MEPCO and also how to apply for new connection and what is procedure. Here staff
gives me opportunity to do practical work. It was a really nice and fruitful experience
for my upcoming practical life.
I would like to conclude by saying that even though every person will have a
different story to tell, the common factor that binds us all is the good work done by
our predecessors in the IUB. I have given more than 100% of my efforts to keep up
that good work and I am sure that my colleagues have done the same. I am hopeful
that as we pass through the corridors of this great institution into the real world, this
legacy will be kept and upheld by the future generation of IUBians.

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Purpose of the study

Purpose of the study was two pronged.
General Purpose
 To get acquaintance to the MEPCO operations.
 To know what sort of changes management brings in managerial activities.
 To see the application of our Professional studies especially.
Specific Purpose
Specific purpose of the study includes.
 A partial fulfillment as a requirement for the completion of MBA Degree.

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 To objectively observe the operations of MEPCO in general and the

operations of MEPCO in specific.
 To make recommendations or implementation plans for the improvement of
the operations of MEPCO in the light of our professional studies.

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About MEPCO
Multan Electric Power Company is one of the biggest Distribution Company of
WAPDA, its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to
Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan
and NWFP Map.
The Charter of MEPCO is to provide the reliability, quality and safety of
electric power supply to the consumers in its Jurisdiction.
MEPCO is envisaged for the creation of the resources and engineering plans for
additions, renovation and augmentation of the distribution system in order to achieve
charter.
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MEPCO is putting efforts to make it a viable and progressive utility to take

care of consumer's power demand.
Following MEPCO Officers will sit at MEPCO Regional Complaint Centre,
Khanewal Road Multan between 1000 to 1200 hrs on the weekdays mentioned
against each to receive the complaints regarding electricity. They will issue orders at
the spot where possible for immediate disposal of complaints:
Sr.No. Officers Day
a. Chief Engineer / Tech:Director Monday
b. Chief Engineer / CS Director Tuesday
c. Chief Engineer / Op. Director Wednesday
d. Manager (Commercial) Thursday
e. Manager (O&M) Distribution Friday
In case of non availability of any of the officer, next junior to him will sit in his
place.
History of MEPCO
WAPDA
The electricity supply service in Pakistan, initially, was undertaken by different
agencies, both in public and private sectors, in different areas. In order to provide for
the unified and coordinated development of the water and power resources, Water
and Power Development Authority (WAPDA) was created in 1958 through WAPDA
Act, 1958.
Area Electricity Board Multan

The local areas electricity distribution service was being performed by various
Regions of WAPDA. Then the Area Electricity Board (AEB) Multan, on the eight
AEBs in Pakistan, was established under the scheme of Area Electricity Boards in
1982, in order to provide more autonomy and representation to provincial

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government, elected representatives, industrialists, agriculturalists and other interest

groups in functions of the AEBs.
MEPCO
The environment and structure of the power industry throughout the world are
undergoing dramatic change. The power sector is moving from monopoly to
privatization and from integration to disintegration. To keep pace with this change,
the Government of Pakistan approved a Strategic Plan in 1994 as a consequence of
which the power wing of WAPDA has been unbundled into 12 Companies for
generation, transmission and distribution of electricity.
Multan Area Electricity Board was reorganized into one such corporatized
entity under the name of Multan Electric Power Company (MEPCO) with effect from
14.05.1998, with the aim of commercialization and eventually privatization.
Vision
To ensure convenient availability of high quality
power in area of responsibility, in order to alleviate
the poverty, improve quality of life and make the
Industrial and Agriculture Sector competitive in the
World Market.

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Mission
Ensure convenient availability of high quality
electric power to the people at affordable
price, retaining financial viability of the
Company.
 To play and active role to make “Sar Sabz and Roshan Pakistan”
 To facilitate agriculture and industrial sector
 To ensure un-interrupted and stable power supply to all customers
 State-of-the-art customer care for satisfaction of customers
 To provide electricity to every village in jurisdiction of company

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 To establish, construct and operate reliable electricity distribution network
MEPCO’s Commitment
Improve customer satisfaction
Reduce Line Losses
Weed out corruption
Increase revenue generation
MEPCO web site is launched to provide the
best customer services
Management Philosophy
 Open door policy for all

 Tackle all problems upfront
 Merit, justice, fair play be the hallmark
 Transparency in all fields
 Accountability of everyone
Corporate Strategy
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In the long run the company desires to become a profit earning

concern by minimizing the line losses and maximizing the recovery. The
company would like to ensure availability of uninterrupted power supply to the
people of the thirteen districts under its jurisdiction. To ensure that the
company is well managed and deliver efficient and quality service to the
electricity consumer at the minimum cost possible.
Culture
MEPCO has its own strong culture. The employees own the
company.
Core Values
The core value of the company is that no
other company is operating in this area
for this purpose.
Business Strategy
The business strategy is to provide
electricity to the consumers at affordable
rates. The domestic consumers using

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less energy are charge at very low rates. The commercial, industrial and big
domestic consumers are charged very high rates. In order to develop
agriculture sector, subsidies provided and they are charged less rates as
compared to commercial and industrial consumers.
Technical Overview
Area of Operation
MEPCO's area of responsibility covers
Civil Districts of Multan, Khanewal, Sahiwal,
Pakpattan, Bahawalnager, Lodhran,
Bahawalpur, R.Y. Khan, Vehari,
Muzaffargarh, D.G. Khan, Layyah, and Rajanpur. (Map)
Organizational Structure of Mepco

MEPCO comprises of the following eight (08) distributions Operation Circles,
one
(1) Construction and two (2) GSO Circle, as detailed below:
Operation Circles

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Grid Stations
Distribution Transformers 109,381 Nos.

Capacity of Distribution Transformers 5639.770 (MVA
Jurisdiction Map of MEPC

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Organogram
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Top Management
Mr. Guftar Ahmed
Chief Executive Officer
O/o Chief Executive MEPCO HQ, Multan.
Off: No. 061-9210333
Res. No. 061-9210357
Mob: No. 0321-4560001


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Mehar Khan
General Manager / (Op) Director
Off: No. 061-9210282
Res. No. -
Mob: No. 0345-3041021
Formations under Jurisdiction
1. All Managers Operation.

2. Power Control Center

Mr. Pervaiz Akthar Shah Khaga
General Manager / (Tech) Director

Off: No. 061-9210335
Res. No. -
Mob: No. 0300-6783100
1. Project Construction
2. O & M (Distb)
3. Safety
Mr. Shafqat Asghar Tahir

Chief Engineer / (Distb:) Director
Off: No. 061-9210006
Res. No. 061-9210008
Mob: No. 0300-8630580
1. Manager (MM) Distb:
Muhammad Shakeel
Chief Engineer / (Development)
Off: No. 061-9210377
Res. No. 061-9210380-Ext:2076
Mob: No. 0300-7300422
1. Procurement
2. Project Finance
3. Planning Scheduling & Coordination
4. DM Environment & Safeguard.

Mr. Anjum Naveed Arrain

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Chief Engr: / (CS) Director

Off: No. 061-9210338
Res. No. -
Mob: No. 0300-9686688
1. Commercial Directorate
2. Mark, Tariff, Contract Management
3. Surveillance & Investigation
Mr. Hamayon Khan

Sadozai
Chief Engr: / (P&D)
Off: No. 061-9210348
Res. No. -
Mob: No. 0333-6188522
1. O & M Directorate

Mr. Faiz Muhammad Khouso
Chief Engineer / (Op.) T&G
Off: No. 061-6782286
Res. No. 061- 6221660
Mob: No. 0333-6061667
1. (O&M) T&G

2. GSO Circles (Multan & Sahiwal)
Mian Iftikhar Ahmed
HR & Admn Director

Off: No. 061-9210388
Res. No. 061-9210389
Mob: No. 0300-4124743
Formations under jurisdiction
1. Admn Directorate
2. HR Directorate
3. Labour & Law
4. Security
5. Transport
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Syed Mushtaq Hussain Bukhari

Finance Director
O/o Chief Executive, MEPCO HQ, Multan.
Off: No. 061-9210323
Res. No. 061-9210299
Mob: No. 0300-4296652
1.
MCA
2. CPC

Mr. Tanveer Ahmad Sheikh
(Chairman)/Director
Industrialist / MD, Maqbool Textile Mill,
Chowk Sarwar Shaheed, Muzaffargarh.
Board of Directors
Ch. Guftar Ahmed (Director)
Chief Executive Officer

MEPCO

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Mr. Jalal-Ud-Din Malik

(Director)
General Manager (NTDC),
WAPDA House, Lahore.
Mr. Muhammad Azhar Iqbal

(Director)
General Manager (HR & Admn) PEPCO,
Mr. Mumtaz Khan Manais (Direct)

Modern Agriculturist & Dairy Farmer
Gold Medal from UNO
& Pride of Performance from President of Pakistan

Mr. Tariq Mahmood Qurahsi (Director)

Engineering Advisor (Power)
O/o the Chief Engr: Advisor Plot No. 06 near old MNA
Building, G-5/I, Islamabad.

Mr. Shahbaz Ahmed Khan (Secretary)
Company Secretary MEPCO
Inputs and Outputs of MEPCO

MEPCO Multan Electric Power Company is an electricity distributing company
that distributes electricity. Multan Electric Power Company buys electricity from
either
WAPDA the Pakistan Water and Power Development Authority and NEPRA
or produce their own electricity by using thermal power station and distributes it to
the consumers through grids and power stations.
Inputs
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The inputs of MEPCO include the raw form of electricity coming from the
power stations and WAPDA and the purchased electricity from NEPRA. The then
distributes this electricity through out the Multan division.
Outputs
The output of MEPCO is the processed form of electricity that is in the state of
distribution and is distributed through grid stations and transformer. They distribute
this electricity through out Multan division to various sub divisions

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Introduction of WAPDA
WAPDA, the Pakistan Water and
Power Development Authority, was created
in 1958 as a Semi-Autonomous Body for
the purpose of coordinating and giving a
unified direction to the development of
schemes in Water and Power Sectors,

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which were previously being dealt with, by the respective Electricity and Irrigation
Department of the Provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e.
WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for
water and hydropower development whereas PEPCO is vested with the
responsibility of thermal power generation, transmission, distribution and billing.
There is an independent Chairman and MD (PEPCO) www.pepco.gov.pk replacing
Chairman WAPDA and Member (Power) who were previously holding the additional
charges of these posts.
WAPDA is now fully responsible for the development of Hydel Power and
Water Sector Projects.
PEPCO has been fully empowered and is responsible for the management of
all the affairs of corporatized nine Distribution Companies (DISCOs), four Generation
Companies (GENCOs) and a National Transmission Dispatch Company (NTDC).
These companies are working under independent Board of Directors (Chairman and
some Directors are from Private Sectors). The Companies are administratively
autonomous and leading to financial autonomy by restructuring their balance sheets
by bringing their equity position to at least 20 percent, required to meet the prudential
regulations and to facilitate financing from commercial sector (approved by ECC).
The Loan Liability Transfer Agreements (LLTA) has been signed with Corporate
Entities and execution of loan transfer is complete.
History of the Power Sector

Pakistan had power generation capacity of 119 MW at the time of partition
from India in 1947. This number has increased more than seven-fold to 19,420 MW.
The power sector is Pakistan is a mix of thermal, hydel and nuclear power plants. The
break-up amongst the three types of power sources is approximately 66 percent
thermal, 30 percent hydel, 3 percent nuclear and 1 percent was other sources. The
electric distribution network serves about 14 million customers; with domestic
consumption at 20.4 percent, transportation consumption 29.3 percent, commercial
consumption at 3.7 percent, industrial consumption at 42.6 percent, agricultural

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consumption at 2 percent and the rest lost as traction between Water and Power
Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC).
The electricity markets in Pakistan has undergone massive changes, with

hydel-electricity as a percentage of total power generated dropping from close to 60
percent to less than 30 percent as of 2009. Consequently, thermal power, which
includes gas, furnace oil and coal powered plants increasing to over 65 percent of all
the power generated in Pakistan. This increasing dependence on thermal power
plants especially furnace oil, has put an increasing strain on Pakistan and its ability
to pay for this power source. According to the Oil and Gas Journal remaining
recoverable oil deposits in Pakistan are approximately 310 million barrels as of
January 2008. Total output has fluctuated within a range of about 60,000 – 65,000
barrels per day since 1989. In 2008
according to the Energy Yearbook 2008, Pakistan produced an average of 69,000
bbl/d of crude oil (representing roughly 20 percent of the demand) with targets of
producing 100,000 bbl/d by 2010. Since the mid-nineties the number Independent
Power Producers (IPPs) has increased, providing approximately an every increasing
percentage (currently at 30 percent) of all the power generated in Pakistan to
WAPDA. To meet the need of these IPPs the furnace oil imports of Pakistan have
surged as of late touching the US$ 6 billion mark for 2008. Total crude oil and
petroleum product imports for 2008 were approximately US$ 11.5 billion,
representing close to a quarter of all the imports for the country.
Pakistan's Power Sector

Companies and Players
Pakistan has two vertically integrated power utilities – the Water and Power
Development Authority (WAPDA) and the Karachi Electric Supply Corporation
(KESC). WAPDA supplies power to all of Pakistan except the metropolitan city of
Karachi, which is the responsibility of KESC. The system of WAPDA and KESC are

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interconnected with a 220kV double circuit transmission line. Pakistan has an installed
generating capacity of
19,420 MW according to Pakistan Energy Yearbook 2008 and the proportion of
power generation is as follows:
 Water and Power Development Authority (WAPDA) – 11,344 MW
 Karachi Electric Supply Corporation (KESC) – 1,756 MW
 Pakistan Atomic Energy Commission – 462 MW
 Independent Power Producers – 5,858 MW
WAPDA was established in 1958 and entrusted with a massive agenda, which
included generation, transmission and distribution of power along with irrigation,
drainage and flood control. It owns about 58 percent of all the power generated in the
country and serves 88 percent of all the electricity customers in the country. The
privatization of WAPDA is underway, with its distribution network getting divided into
eight electric supply companies. There will be eight distribution companies (DISCOs),
along with three generation companies (GENCOs) and a national transmissions and
distribution company (NTDC).
KESC was incorporated in 1913 and is responsible for generation,
transmissions and distribution to Karachi and all its adjoining localities. KESC has
approximately 1.5 million customers most of them are located in urban areas. KESC is
wholly dependent on thermally generated power to provide the needs of its customers.
As of June 2009, KESC is facing around 450 MW shortfall in its ability to generate
power that is demanded by Karachi and is dependent on WAPDA to fill in the deficit. In
order to maintain transparency, fair competition and protection of customers the
Government of Pakistan enacted the Generation, Transmission and Distribution of
Electric Power regulation act, 1997. Under this act the
National Electric Power Regulatory Authority (NEPRA) had been created to
regulate the Pakistan’s power sector. NEPRA's primary responsibilities include the
issue of licenses for power production, transmission and distribution (including the
stipulation of licensing fees), specification of electricity tariffs. With respect to tariffing,
NEPRA is also responsible for approving the tariffs negotiated in connection with bilateral
agreements between individual power producers and the National Transmission and

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Distribution Company (NTDC). Considerable progress has been made by NEPRA toward
the development of the regulatory management and future market design for the power
sector. All generation, transmission, and distribution companies are now licensees of
NEPRA, and abide by the rules and regulations created by NEPRA regulators to
support reliable and efficient power sector production.
The Private Power and Infrastructure Board (PPIB), the state agency responsible
for regulating Pakistan’s power sector, acts as a one-stop shop for investors interested in
entering the market, and helps companies negotiate power purchasing agreements and
obtain licenses. PPIB came into existence after the 2002 power policy came to fruition,
acting in the name of the Pakistani Government to provide advice and guidance for the
implementation of power plant projects. PPIB's efforts are focused on the
privatization of public sector companies, as well as on attracting new investment from
the private sector by providing incentives under new and improved policies. PPIB also
provides guarantees to private investors for the performance of government entities
(such as WAPDA, KESC etc., of which KESC has been privatized). Currently, the
transmission, distribution and retail supply of electricity in Pakistan is largely
undertaken by WAPDA, whose various branches have been recently separated into
distinct companies in an attempt to create a more competitive, market- oriented
environment. PPIB monitors litigation and international arbitration for and on behalf
of Government of
Pakistan, and, finally, assist the regulatory tariffs for new private power projects.
The Alternative Energy Development Board (AEDB) was founded in May 2003 for
supplying wind, solar and mini/small Hyde power generated electricity in remote
regions of Pakistan. AEDB is also responsible for developing the country's medium and
long-term promotion policy for renewable energy sources. In addition, its functions
include the coronation of joint ventures with the aim of transferring foreign technologies
to upgrade the existing alternative energy technologies in Pakistan. The AEDB has a
mandate of 10 percent of the total installed
Power Policy 2002

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A new power policy was enacted in 2002, it closely resembled its predecessor
dating from 1994, but it has broader range of applications. Entitled “Policy for Power
Generation Projects – Year 2002”, the new power law applies both to private investment
projects and to public-private partnerships and public-sector power plant projects. The
law also makes it possible for investors not only to participate in public tendering, but also
to propose power plant projects on their own. With the new law, respective provincial
governments are responsible for approving plants with ratings below 50 MW. A two-
component system of remuneration has bee defined for power providers: part of the
remuneration depends on the output of the respective plant (capacity purchase price,
CPP), and the rest if a function of the source used for the energy generation (energy
purchase price, EPP). The later is supposed to account for 34 to 40 percent of the total
remuneration. The new provisions for 2002 give preference to projects involving the use
of domestic energy resources, i.e. mainly water, coal and natural gas. Moreover, import
duties on plant components have been reduced to a mere 5 percent of the standard rate.
Incentives Provided in Policy

Complete security and guarantee against political risk, foreign exchange risk,
taxation risk and contract risk
 Pakistan needs 5,529 MW of electricity by 2009 – 2010
 Special incentives to use indigenous and locally available energy sources such as
hydel, coal and gas instead of oil fired power stations. Secured return on
investment on coal/gas based power projects, by adjusting the tariffs to provide the
incentive
 Under the pre-qualification criteria, main sponsors to have 20 percent equity
stake. Additionally, the main sponsors must have direct and relevant experience
in development, implementation, ownership and operation of the facilities
Current Situation
As of June 2009 Pakistan is facing 6 – 10 hours off rotating black-outs
(loadshedding) because of the ever increasing gap between demand and supply. With
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an installed capacity of 19,420 MW and effective generation around the 14,000 – 15,000
MW and demand in the 16,000 – 17,000 MW there is a shortage of 2,000 – 3,000 MW.
The situation is exacerbated by the unavailability of gas and/or oil for generating the
electricity, unpaid due by various parties, issue of revolving debt among the related
parties and transmission issues. Official estimates are that 5 – 12 per cent of economic
production in Pakistan is lost every year due to load shedding.
Based on the World Bank draft report on Pakistan's Investment Climate,
Pakistani power sector sells electricity to consumers at a rate that is 60 percent higher
than in India and 40 percent higher than in Bangladesh. The report claims that apart
from technical issues, corruption has impeded access to power supply to business firms.
84 percent of business firms have allegedly had to make “informal payments” for
obtaining electricity services. This shows an increase from 25 percent of the firms that
had reported making such payments in 2002. In cities like Lahore, Quetta and
Hyderabad, almost every business that applied for a power connection is reportedly
asked to make an informal payment. Power outages are universal, with 95 percent of the
businesses reporting power outages at some time during the day. The total annual
incidence of power outages in Pakistan, according to the report, comes to 945 hours.
Outages leading to forced overtime, waste of material, damaged equipment and an
added maintenance averaged at 10 percent of annual sales.
This figure has increased from about six percent in 2002. The report has
recommended that if uniform tariff is applied nation wide, timely payments must be made
to cover the difference between determined and notified tariffs; there must be a
substantial reduction in transmission, distribution and collection losses, which currently
account for over a quarter of the net generated power in Pakistan.
Fault lines identified are:
Electricity price: The price of electricity is on the higher side relative to other South
Asian countries. Even with the subsidies, system losses and supply quality problems,
electricity tariffs in Pakistan are 60 percent higher than in India and about 40 percent
higher than in Bangladesh

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Losses: Technical and collection losses impose a severe strain on the financial
sustainability of Pakistan’s power sector. The country’s electricity system loses more
power than all comparators, apart from India, which lost a quarter of its generated
electricity in 2006/07. According to Pakistan Energy Yearbook 2008, transmission and
distribution losses in the public grid were estimated at 20.3 percent in 2007-08 against
23.2 percent for 2002-03.
Access to power: Access to power supply is a serious challenge for firms
although the pattern differs across location, type and size. Delays in getting electricity
connections has become worse for firms and this barrier to entry and constraint on
expansion. The waiting period for a new connection went up to from around 37 to 41
days from 1999-2002. The average waiting period in 2006 deteriorated to 92 days,
placing Pakistan among the worst performers in the world, second only to Egypt
amongst its comparators.
Corruption in the electricity sector: In addition to technical issues, other factors

impede low-cost access to power supply. A stunning 84 percent of the firms that applied
for connection had to make informal payments in order to obtain electricity services — a
startling increase from the 25 percent firms that reported making such payments in
2002.
Supply interruptions: Firms facing unreliable power supply with frequent outages
are disproportionately affected in different regions of Pakistan. The firms face significant
interruptions in power supply, disproportionate to the available generation capacity.
Outages are not just pervasive but almost universal, with 95 percent of firms reporting
power outages. In case of Pakistan, the total annual incidence of power outages comes
to 945 hours, comparable to Bangladesh (1105 hours), which is the worst case among
the comparator counties in both frequencies and number of outages
Power interruption losses: Power interruptions cause severe financial losses for
all Pakistani firms, and affect small firms and the textile sector the most. Outages,
leading to forced downtime, waste of materials, damaged equipment, and added
maintenance average 10 percent of annual sales averaged over the entire

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manufacturing sector. This figure has almost doubled from the reported six per cent in
2002 and is, again, second only to
Bangladesh among comparator countries
The World Bank report recommends that the power sector needs to achieve
financial sustainability to enable better maintenance and future expansion. The report
recommends: “If uniform tariff is applied nation-wide timely payments must be made to
cover the difference between the determined and notified tariffs; and there has to be a
substantial reduction in technical (transmission and distribution) and commercial
(collection) losses which currently stand at a quarter of net generation due to overloaded,
under-invested, and under-maintained networks”.
Thermal efficiency in Pakistan in power generation is around 32 to 35 percent,

against the global average of 54 percent. Pakistan can close this gap and increase
power generation from thermal plants by a colossal 60 percent just by adopting new
technology and production techniques. Further, distribution losses are around a quarter
of the generated power. By reducing this to a more manageable 10 percent, power
available can be increased by a further 2,500 MW. Adding the benefits of just these two
suggestions increases the effective power available by 4,000 – 5,000 MW, which would
cut the deficit and in fact give the country breathing room till 2010 when other power
generation projects come online.
Demand and supply of electricity:

According to the Ministry of Water and Power, the deficit of power for the
years 2008-09 and 2009-10 is 4,025 MW and 5,529 MW respectively.
Projection for demand and supply of electricity (2008-2010)
Load pattern and peak load hours:

The electrical load pattern in the country varies from season to season; during
summer season there is an increase in the inductive load while in the winter season

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increase in resistive load has been observed. The peak hours of the country also
vary from season to season depending the time of sunset. As an average, peak
hours are generally taken as between 06:00 PM to 10:00 PM. A short span of peak,
about one hour, also occurs in the morning but this being about 20 percent less in
magnitude than evening peak and is not very important for generation planning but it
is significant for system operation and planning.
Maximum load:
Maximum on the different power plants during the year 2007-08 is given in
below table:
WAPDA - Supply and demand estimates:

Electricity consumption in the country is growing steadily. The projected
committed power generation and peak demand in the areas of WAPDA for the year
2009-10 and 2010-11 is given as under.

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Consumers:
Having consumption of 45.9 percent of electricity, domestic sector is the major
consumer of electricity in Pakistan, followed by industrial sector 28.2 percent,
agricultural 11.5% and commercial sector 7.6 percent.
Electricity consumption by sectors 2007-08 (Percentage of Total 73,400 GWh)
The sector-wise and province-wise consumption of electricity is given in the following charts:
Electricity consumption by sector (GWh)

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Sectoral electricity consumption by Province 2007-08 (GWh)
Inefficiencies and Losses

The Pakistani power sector based on independent researchers and
multilateral organizations such as World Bank and Asian Development Bank is
plagued with production inefficiencies at every level. On-line transmissions losses
are estimated at 20 per cent which skews the government's official production figures.
With 20 per cent losses in transmission due to dilapidated distribution system, low
conductivity of transmissions lines and theft of power the effective power generated is as
follows: Installed capacity 19,420 MW – Productivity losses (10%) = Available capacity of
approximately 17,478 MW - Transmission losses (20%) = Effective Generation Capacity
of approximately 14,000 MW. If we compare this effective generation capacity against
effective demand of (16,500 MW), Pakistan is facing a shortage of 2,500 MW or 12
percent of installed production.
One prominent example of transmissions losses are the transmission wires in
Karachi area. These lines are made of steel instead of the more conductive copper.
The reason for using steel for the lines is due to the close proximity of the steel mill
and therefore cheaper purchasing price of steel compared to copper. Incidentally,

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these
steel wires in addition to contributing to power losses are also subject to theft as this
scrap steel is sold to dealers and traders.
Finally, government neglect of power infrastructure has left many cities in

Pakistan still using antiquated energy infrastructure. This state of affairs is
complicating privatization efforts as investors are faced with a foundation that has
crumbled from years of neglect. Ironically, this has in turn required the state to spend
large amounts of money to update the infrastructure – to make it attractive for
investors before the privatization can take place.
Sources of Renewable Energy

Hyde power
Pakistan's total Hyde power potential has been estimated between 40,000 MW to
50,000 MW of which roughly half (20,000 – 25,000 MW) can be harnessed relatively
easily, and approximately 6,400 MW of which is actually being exploited. More than 1,000
MW micro/mini Hyde power potential is available in the northern mountainous region of the
country, of which less than 1 percent is developed. Due to anticipated growth in demand
and of the fact that only about 20 percent of the available Hyde power potential is being
utilized, the “Vision 2025” development plan provides for vigorous, multi-stage
development of Hyde electric power.
Wind Energy
Even as recently as 2003, Pakistan had not installed a single wind energy
conversion system with a generating capacity above 500 W. There were only a small
number of micro-plants (300 – 500 W) for generating electricity, and roughly 30 wind
power installations are in use for pumping water in the coastal regions of Baluchistan
and Sindh provinces. Most notably along its 900 km coastline and in a number of
North-West Frontier valleys, Pakistan possess about 50,000 MW of economically
exploitable wind-power potential. In July 2006, Turkish based Zorlu Energji Grubu
signed a letter on intent to install a 50 MW wind farm in Pakistan. Zorlue would
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operate the wind farm for 20 years; it was inaugurated in July, 2009. Zorlu has indicated
that it would like to install an additional 2,000 MW of renewable energy capacity in
Pakistan by 2015.
Nine companies in addition to Zorlu have been given licenses by the Alternative
Energy Development Board of Pakistan to generate electricity from wind power. All the
companies will generate 50 MW of electricity for the next 20 years. The companies are:
New Park Energy Ltd.,Tenaga Generasi Ltd.,Green Power Ltd.,Wind Power
Ltd.,Zyhper Power Ltd., Win Power Ltd.,Milergo Pakistan Ltd. And Beacon Energy
Ltd.
Solar Energy
Pakistan has very good overall solar-energy potential as the average insulation
rate amounts to approximately 5.3 kWh/m2. The south-western province of
Baluchistan offers excellent conditions for harnessing solar energy. There, the sun
shines between 8 and 8.5 hours daily, or approximately 3,000 hours per annum.
Despite these favourable conditions, the use of solar energy for generating energy or
for heating homes is negligible. Photovoltaic systems are used primarily for
producing electricity in rural area. As far back as the early 1980's the Government of
Pakistan had 18 PV systems with a composite output of 440 kW installed in various parts
of the country. Due to lack of technical knowledge and maintenance capabilities no
further systems were added and seven of the installed PV systems have stopped
working. However, with the establishment of AEDB, this time round will ensure
sustainability of such projects by providing a workable model on commercial lines.
Nuclear Energy
Pakistan has two nuclear power plants, Chashma-1 and Kanupp, with 300
MW and 125 MW respectively, of installed capacity. The Pakistan Atomic Energy
Commission operates both nuclear plants. Pakistan's first nuclear reactor was set-up
with the help of Canadians in 1971 at Kanupp near Karachi; with an installed
generating capacity of 125 MW. Kanupp-2 and Kanupp-3 are under-construction and

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are being built by the Pakistan Atomic Energy Commission (PAEC). Both these power
stations are park of Pakistan's civilian nuclear program and will have an installed
capacity of 1,000 MW for each. Kanupp-2 and Kanupp-2 nuclear plants will be based
on the model of CANDU nuclear reactor and will be under IAEA safeguards.
Pakistan is currently working on a third nuclear power plant (Chashma-2), with
the help of China National Nuclear Corporation. The main part of the plant was
designed by Shanghai Nuclear Engineering Research and Design Institute (SNERDI),
based on the Qinshan Nuclear Power Plant (pressurized water reactor). The plant will
have 325 MW of installed capacity, with an estimated budget of Rs 52 billion and could
be completed by 2011.
The third nuclear reactor is Pakistan Nuclear Power Fuel Complex, a 1,000 MW
pressurized water reactor under construction by PAEC. The main part of the plant is
designed on the model of Chasma Nuclear Power Plant and Candu reactor. The power
plant is expected to be operational by 2010.
Independent Power Producers (IPP’s)

The Independent Power Producers (IPPs) is an entity, which is not a public utility,
but which owns facilities to generate electric power for sale to utilities and end users.
Pakistan has allowed IPPs to operate in its energy sector since 1994 when the
Private Power Generation Policy was established to counteract the increasing
inefficiency in state electricity generation, causing frequent and lengthy outages during
the early 1990s. Today 17 of the largest IPPs in the country represent more than 30
percent of the installed electricity generation capacity and the government is working to
raise both this percentage and the number of private companies operating in the sector
in order to meet a growing demand and part of the “Vision 2025” strategy. With the
current energy deficit emerging in late 2006 and projected to expand to 5,500 MW in
2010 the Government of Pakistan and the related players in the energy sector are in the
process of increasing the power generated from existing and new power producers. As

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mentioned a new power sector policy of 2002 further increased incentives for new
players to build and operate power generation facilities
The 17 largest IPPs in Pakistan all operate thermal generating plants only. In
addition to the 17 major IPPs, numerous small IPPs with total installed capacity of
100MW or less have been active in the Pakistani Power Sector since 1994.
According to the Pakistan's Energy Yearbook, IPPs had an installed capacity of
5,822 MW, representing over 30 percent of the generating capacity of the country. In two
international shows this year, PPIB unveiled three new large-scale projects for investors
that included a
400MW to 500MW gas project called Uch II, a 400MW dual-fired project to supply the
textile industry in Faisalabad, and another dual-fuel project near the load center in the
industrial city of Lahore. Additional opportunities were presented in the form of smaller
hydelpower projects. The shows elicited an immediate response from investors,
including a proposal from AES to develop a US$ 1 billion coal project in Thar, and the
announcement of increased investment to the tune of US$ 1 billion from CDC Group’s
Globeleq, which already owns 50% of the Lahore-based Orient Power.
Future Outlook and Scenarios

Pakistan at the present can provide only 50-55 percent of its population with
electricity, albeit intermittently. The government has made it a priority to add 3,000 MW of
electricity by end of 2009 and to add approximately 15,000 MW by 2015 in order to
reliability provide electricity to an increasing percentage of the population. Electricity
demand outstrips supply by in excess of 3,000 MW in the summers and 2,500 MW in
the winters with the gap expected to grow and reach almost 5,500 MW by end of
2010. In this scenario is it impossible for the government of Pakistan to provide
power and fill this gap, rendering Independent Power Producers (IPPs) viable and
imperative. IPPs provide approximately 30 percent of the country's generation capacity
and with this addition of 2,200 MW, IPPs will provide more than 40 percent of the
country's generation capacity.
To prevent the electricity deficient from getting out hand and to minimize
future supply deficits, Pakistan has adopted a system development plan called
“Vision 2025' that targets to add 35,000 MW by the year 2025 to help sustain growth
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of the Pakistani economy and to provide electricity to the under served rural areas of
Pakistan. This number of 35,000 MW is nearly twice as much power that was
available to Pakistan at the end of 2002 and 175% of the installed capacity as of 2009.
Around two thirds of the additional power (22,563 MW) is slated to come from Hyde
electric power plants. New gas-fired power plants are supposed to contribute 13% (4,680
MW), along with coal-fired power plants of 13% (4,350 MW). New nuclear power plants
with a total installed capacity of 5% (1,800 MW) are planned. Finally, renewable sources of
energy are supposed to account for more than 4% (1,500 MW) of the overall newly
installed capacity. The planned expansion will cost approximately US$ 30 billion. In view of
Pakistan's high national debt and persistent budget deficit, the government always
positioned this as a largely private effort with the hope of attracting private investors and
strategic players.
Pakistan has decided to launch two new nuclear power projects at Chashma
worth Rs 129.37 billion that would generate 640 MW power to induct into national grid.
These plants include Chashma Nuclear Power Project (c3) and Chashma Nuclear
Power Plant (c4) and government has allocated Rs 100 million for these nuclear
power projects in the Public Sector Development Programme (PSDP) 2008-09.
Two more private power projects have obtained financial closure for
establishment of 420 megawatts electric power stations. The two projects, Hubco-
Narowal Power Project and Liberty Power Tech Project have achieved financial
closure for 220 and 200 megawatts electric power stations and have gone into
construction phase. The
sponsor of HUBCO-Narowal project, located at Narowal, is the Hub Power Company
Limited, while the lenders of project include Habib Bank Limited (HBL), National
Bank Limited (NBP), Allied Bank Limited (ABL) and Bank Al-Falah. The sponsors of
Liberty Power Tech Project, located near Faisalabad, are Liberty Mills Limited and
Mukaty Family, while lenders of project are Allied Bank Limited (ABL), Habib Bank
Limited (HBL), National Bank Limited (NBP), Faysal Bank Limited (FBL), Meezan
Bank Ltd and Bank Al-Falah Ltd, etc. The estimated investment in HUBCO-Narowal
project is approximately US$ 274 million while in Liberty Power Tech Project it is

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US$ 240 million, expected to be commissioned by March 2010 and December 2010,
respectively. With these two projects having started construction, a total of twelve (12)
new IPPs are now under construction through government's power policy and will add
a capacity of 2,539 megawatts by end of 2010.
WAPDA — vision 2025
The high profile vision 2025 was unfolded at a seminar arranged by WAPDA
and inaugurated by the President Gen. Pervez Musharraf in Lahore on Monday. The
Chairman Water & Power Development Authority Lt. Gen Zulfiqar Ali Khan
highlighted WAPDA vision which envisages meeting the entire needs of water and
power generation requirements of the country at a total expenditure of 45 billion US
dollars.
Inaugurating the seminar on "Water Resources and hydropower development

programme; vision 2025", President Musharraf, attired in his Military uniform,
commended the efforts of his comrade General Zulfiqar to put the long-ailing
WAPDA on the right path. Gen. Musharraf disclosed that former prime minister
Nawaz Sharif sought Army's help in managing the affairs of troubled WAPDA.
"Accepting the PM's suggestion, I asked Lt. Gen. Zulfiqar Ali Khan to assume the
charge of Chairman WAPDA, though he (Zulfiqar) was a bit shy.... but he took up the

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great challenge and proved his mental by plugging in the leakages and pulled out the
corporation for a turnaround," General Musharraf remarked.
He said that WAPDA was on a right path and marching towards a great
recovery. The Vision 2025, he said, was also a marvellous achievement under which
short-term strategies have been developed for the good of the country. Elaborating
WAPDA Chairman, said, six of the schemes that form part of Vision 2025 are due to
be launched next month. They include the Gomal Dam in NWFP, Hingol Dam and
Mirani Dam in southern Balochistan, the Greater Thal Canal in Punjab and the Right
Bank Outfall Canal in Sindh. The cost of these five schemes is estimated at nearly 5
billion dollars. At current prices, the total cost of the Vision 2025 programme —
which also includes Basha Dam on the Indus River in the Northern Areas, 320
kilometers upstream of Tarbela Dam — is estimated at $45 billion.
Chairman said that these six projects, costing 6.29 billion dollars, would help
generate 2817.4 MW power besides creating water storage facility of 5.04 Million
Acre Feet (MAF) which will bring 1,936,200 areas of land under cultivation in all four
provinces of the country.
He said that the objective of the seminar was to seek participation of the
interested parties including national and international investors for the fast track and
cost effective implementation of the projects. "The seminar aims to share details and
status of projects, of foreign and local investors," he said.
The Chairman said that due to sedimentation, Tarbela, Mangla and Chashma
reservoirs have already lost 4.26 million MAF capacity and this loss would be 5.94
MAF by year 2010 which was almost equivalent to the original storage capacity of
Mangla Dam.
He lamented that so far existing reservoirs could store 17.1 MAF water out of
total storage potential of 64.4 MAF which was only 11 per cent of available surface
water. "We can cultivate around 22.5 million acre cultivable land by using the

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available water resources," he observed. He added that same was the case of
hydropower generation as only 16 per cent of our total capacity could be achieved.
General Zulfiqar Ali Khan said that according to a study, we may face power
shortage of 650 MW by the year 2006. However, by harnessing the potential to
generate 40,000 MW, this shortage could easily be overcome. He said that during
the last 20 years, the share of hydropower in total generation had reduced from 60
per cent to 20 per cent.
The Vision 2025 is to be implemented in three phases. The federal cabinet

approved the Vision 2025 programme in August last year. Under Phase 1 of the
three-phase programme, WAPDA has been given the go-ahead to undertake
detailed engineering and feasibility studies for Basha Dam and the Greater Thal
Canal, as well as for Kachi Canal in Balochistan, the Chashma Right Bank Canal in
NWFP, the Thal reservoir project in Punjab, and three projects in Sindh: Riverne
Area Development, Thar Canal and Sehwan Barrage. The total cost of these
projects is estimated at $11.71 billion (at the current exchange rate of 64 rupees to
the US dollar).
Priority hydroelectric generation projects in Phase I include: Jinnah ($162

million), Malankand-III ($80 million), Allai Khawar ($110 million), Golen Gol ($104
million), New Bong ($110 million) Khan Khawar ($86 million), Duber Khawar ($109
million, and Pehur High Level ($8 million).
In January this year, the federal government also approved Phases II and III
of the Vision 2025 programme. Hydroelectric project to be built under Phase II
include: raising the height of Mangla Dam to increase its reservoir storage and power
generation capacity ($850 million), Thal Reservoirs ($58 million), Doyian ($346
million) Neelkum-Jhelum ($1.5 billion), Kohala ($1.4 billion), Matiltan ($110 million),
Gulpure ($150 million), Abbasian ($250 million), Rajdhani ($113 million), and several
combined cycle power generation projects ($2.9 million).

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Phase III includes 16 schemes, including dams and generation projects:

Basha ($6 billion), Dasu ($3.1 billion), Patan ($2.97 billion), Thakot ($2.56 billion),
Bunji ($2.69 billion), Munda ($1.56 billion), Chakothi ($167 million), Naran ($262
million), Suki Kinar ($750 million), Patrind ($167 million), Azad Pattan ($266 million)
Karot ($252 million), Thar Coal Project ($1.6 billion) Lakhra Coal Project ($360
million, and several combined cycle power generation projects ($1 billion).
Vision 2025 is the most ambitious development programme in Pakistan's

history, and its implementation will, of course, depend on the country being able to
find the money to finance it. Even so, its basis reflects very creditably on both — the
Federal Government.
Among the international lending agencies that have shown interest in co-
financing the Vision 2025 programme is the Asian Development Bank (ADB).
However, it is not yet clear as to what will be the size of ADB's investment. Before
firming up its investment plans, the ADB is expected to consult other lending
agencies and donor countries that may be interested in providing funding for the
programme. A report prepared by WAPDA and the federal government on Vision
2025 was circulated amongst ADB's partners earlier this year and is said to be under
consideration by them.
The World Bank is also said to have shown interest in partly financing the
Vision 2025 programme, but its support is said to be conditional upn counterpart
financing by the Pakistan government and WAPDA. According to the Economic
Affairs Division, financing for the progrmme is also being discussed directly with
China, Saudi Arabia, the United Arab Emirates and several other friendly countries.

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Crisis of Electrical
Energy in Pakistan and Future
guidelines for Policy makers
INTRODUCTION
Throughout the world electricity is the most widely used and desirable form of
energy. It is a basic requirement for economic development and for an adequate
standard of living. As a country’s population grows and its economy expands its
demand for electrical energy multiplies. If this demand is not met adequately a
shortage in supply occurs. This shortage can assume crisis proportions.
Pakistan has been facing an unprecedented energy crisis since the last several
years.

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The problem becomes severe during the summers. Large numbers of users
have to be disconnected from the energy supply system to prevent overloading the
generating stations (load shedding). On occasions the urban dwellers had to suffer
load shedding of 8-10 hours everyday. During the same time rural consumers
suffered it for up to 20 hours at a stretch.
Almost two years ago the Chairman Water and Power Authority (WAPDA)
admitted that his organization could not meet the current demand for electricity. It is
surprising such a senior person took so long to discover this problem. The
government talked about Pakistan’s supposedly booming economy but failed to
understand the need for meeting the energy needs of the boom. General Musharraf
(R) (ex-President) after becoming Chief Executive used to talk about building dams
especially Kalabagh Dam. Very few power plants have since been set up. The
present energy crisis is totally due to lack of forecasting and planning.
A general block diagram of power system is presented in Figure 1.
Any power system has 3 major parts:
1. Generation system
2. Transmission system
3. Distribution system
Generally speaking the major technical causes of the shortfall in the
availability of electrical energy in Pakistan are:
• Insufficient installed generating capacity.
• Transmission system unable to transmit the greater load now imposed upon it.
• Grid Stations and related equipment unable to carry the load imposed.
• Distribution System was built to carry a smaller power and hence unable to cater to
existing demands [Gelling at el 1988].
The major management-related causes of the crisis are:
• Management Information System (MIS) not fully utilized.
• Failure to forecast and plan for the future.
• Failure to set up new generating stations in time.
• No new Transmission/Distribution networks & grid stations setup.
• Unexpectedly rapid growth of load.

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Present Situation of Crisis

 Total generation of electricity by different sector in Pakistan is presented in
Table 1.
 Share of different kind of power generating plants in Pakistan is presented in
Figure 2.
 Historical peak demands of Pakistan from year 2002-2007 are presented in
Table 2.
 Forecast of demand and generation for the years 2009-2020 is given in Table
3.
 A careful examination of the tables 2 and 3 clearly indicates that although
Pakistan’s installed generating capacity will increase, the shortfall will
continue to exist [Federal Bureau of Statistics 1998]. The government must
take steps to overcome this situation.
Short term solution

1. Line losses control
The methodology that will provide immediate relief is the conservation and
judicious use of whatever little energy is being produced in the country. The current
losses in the system are 24% of the total power generated. These include losses
incurred during transmission and distribution as well as due to theft. Wasteful
consumption such as businesses remaining open till late at night and unnecessarily
brightly lit also contribute to losses. By reducing these to 10 % we can save up to
300 MW of energy. The government should enforce shutting down businesses and
forbidding excessive and unnecessary lighting during late hours. Zoning should be
enforced in cities. Market zones can have their power switched off (load shedding) at
scheduled hours. As a benefit of service
WAPDA employees are allowed free use of electrical energy for their
domestic use. This facility has been grossly misused [Federal Bureau of Statistics
2002]. It is recommended every WAPDA household be given a raise in salary and
the free electricity facility being withdrawn.
2. Improving Power generating capacity
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It is an unfortunate fact that WAPDA and IPPs thermal power plants are
running at an average plant factor of about 50 percent. This means they are
producing only 50% of their installed capacity. They are not being used to deliver
their full power. Internationally it is quite usual to have thermal power plants
operating at 75 to 80 percent plant factor.
Operating the power stations at higher plant factors demands better
maintenance procedures there. It is felt that operating the plants at a higher plant
factor will cause them to deliver 20 to 30 %more energy to the system. This will
alleviate the present shortage to a significant extent. Improving the power plant
factor of the existing plant is far more economical then setting up new power plants.
Medium Term solutions

The policy makers of Pakistan talk about making dams and setting up nuclear
power plants but do not understand the importance and benefits of alternate energy
(renewable source of energy) sources such as solar, windmill energy, etc. These are
cheap and quick methods for producing electricity. Pakistan is very blessed because
abundant solar energy is available. Similarly wind energy is readily available in the
coastal areas and throughout the winter months in Baluchistan. These energy
sources if tapped can be of great help in reducing the current demand supply gap.
1. Wind Energy
America, Canada and China have invested large sums of money into
research and development in order to obtain maximum energy from wind. Wind
power is now the fastest-growing energy source worldwide [US Department of
Energy 2002]. Total worldwide production of electrical energy from wind is around
30000MW. Germany, with over 12,000 megawatts of wind power at the end of 2002,
leads the world in generating capacity. Spain and the United States, at 4,800 and
4,700 megawatts, are second and third. Many predict that, with the development of
more efficient wind turbines, wind energy will provide an increasingly large proportion
of electrical production in the U.S. Tiny Denmark is fourth with 2,900 megawatts, and
India is fifth with 1,700 megawatts. Although a score of countries now generate
electricity from wind, a second wave of major players is coming onto the field,

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including the United Kingdom, France, Italy, Brazil, and China. However, land
clearing for vast "wind farms" may cause concern to environmentalists.
2. Solar Energy
Pakistan has high potential of renewable energy sources. A very large part of
the rural population does not have the facility of electricity because they are either
too remote or it is found too expensive to connect their villages to the national grid
station. Pakistan being in the sunny belt is ideally located to take advantage of solar
energy. This energy sources is widely distributed and abundantly available in the
country. During last 15 years Pakistan has shown quite encouraging progress in the
use of photovoltaic cells. Currently electrical power derived from solar energy is
being used is being used in some public parks. These include Khalid bin Waleed
Park in Peshawar and the Race Course Park in Rawalpindi. The Public Health
department has installed solar water pump for drinking purposes in some parts of the
country. Both public and private sector are playing their role in up grading of
photovoltaic system in the country. If this technology is used in large scale
commercial production of electricity the problem of energy shortage can be
substantially reduced.
Long term solution

1. Coal Potential in Pakistan
Pakistan has the 5th largest coal reserve in the World, amounting to
approximately 185.175 billion tones. That has largest reserve in the country that is
approximately 75.5 billion tones. Pakistan can generate more than 100,000 MW of
electricity for next 30 years if it uses all coal available to it. At present Pakistan
generates only 0.79% of its total electricity from coal [WAPDA Annual report 2007-
08]. Coal contributes approximately 39% of the total global primary energy demand.
Share of coal in total electricity produced in different countries is
PAKISTAN 0.79%
USA 56%
UK 58%
China 81%
2. Hydro-electric power potential
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Pakistan has a huge potential to produce electric power from hydro-electric

power plants.
In table 5 presents a view of electric power generation with power plants whose
feasibility study has been completed or is under process. Construction of all these
plants gives almost 55,000 MW. This easily meets the electrical energy requirement
of Pakistan for next 20-25 years.
From the table 4, 5 we can see that hydro-electric power has a great potential. Some
details of these projects are given in table 4, 5.These plants can give low cost
electricity. As they are run of river plants, they can be easily installed with minimum
cost and in short time.
Conclusion
The policy makers of Pakistan do talk about making dams and setting up
nuclear power plants but do not understand the importance and benefits of alternate
energy (renewable source of energy) sources such as solar, windmill Tidal, Wave,
and Geothermal energy, etc. They are cheap and quick methods for producing
electricity. Pakistan is a very blessed country because solar energy is available in
most cities all year round. Similarly wind energy is readily available in the coastal
areas and in interior Baluchistan during winter. These energy sources if tapped can
be of great help in reducing the current demand supply gap. The possibility of using
coal and hydro-electric run of river plants must also be considered seriously for the
long term.
Table 1. Total capacity of electric power generation of Pakistan in 2009

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Table 2 Historical peak demand 2002-2007
Table 3. Forecast Supply and demand position from 2009-2020 in MW
Table 4. Pakistan’s Total Power Potential

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Table 5. Run of river projects with their feasibility status
Fig.1. Block diagram of power system

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Fig.2. Power generation in Pakistan by different sectors
Fig. 3. Power generation in last few years by WAPDA and KESC

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Product Lines
Multan Electric Power Co. distributes the electric power/supply to Domestic,
Commercial, Industrial and Bulk consumers. The company also provides the
maintenance of Electrical Equipments.
Competitors:
 Faisalabad Electric Supply Co. (FESCO)
 Gujranwala Electric Power Co. (GEPCO)
 Hyderabad Electric Supply Co. (HESCO)
 Islamabad Electric Supply Co. (IESCO)

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 Peshawar Electric Supply Co. (PESCO)

 Quetta Electric Supply Co. (QESCO)
 Karachi Electric Supply Company Ltd. KESC
Overview of the Competitors:

Faisalabad Electric Supply Co.
FESCO Distributes and supplies electricity to about 2.76 million customers

within its territory with a population over 26.5 million under a Distribution License
granted by National Electric Power Regulatory Authority (NEPRA) pursuant to the
Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997
(NEPRA Act). Geographical service area of FESCO comprises Faisalabad,
Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh and Chiniot.
Gujranwala Electric Power Co.
Gujranwala Electric Power Company (GEPCO) has been setup over area of
jurisdiction and network of former Area Electricity Board, which was created in early
eighties. It encompassed the areas of existing Districts of Gujranwala, Hafizabad,
Sialkot, Narowal, Gujrat and Mandi Bahauddin. GEPCO was incorporated on 25th
April 1998 and obtained Certificate for commencement of business on 5th June
1998. Management and Administration is entrusted to a Board of Directors. We have
about 2,356,305 connections; Average monthly Collection for the year 2008-09 is
approximately 3.2 billion rupees.
Hyderabad Electric Supply Co.

Area Electricity Board (AEB) Hyderabad was one of the eight AEB's
constituted through amendments in WAPDA Act during 1981. Later on Government
of Pakistan approved revamping of WAPDA power sector in April 1998, resultantly

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twelve corporate entities were formed, Eight Distribution Companies (DISCOs), one
National Transmission and Distribution Company (NTDC) and three Generation
Companies (GENCOs). Now one more GENCO has been established. All these
companies have been incorporated under Companies Ordinance 1984.
Islamabad Electric Supply Co.
IESCO aspires to become a major, diversified, transitional, integrated power

supply company in Pakistan, with a strong environment conscience, playing a
national role in electricity supply and distribution. At IESCO, we believe that time has
come for us to set our sights beyond just being a provider of conventional services.
We expect to carry the spirit forward by training and leading a crack team through
the portal of Contact Center that will push the frontiers of our interactive experience
with our customers. Our Mission is to bring the assurance of energy to our
customers, with world-class quality and commitment for satisfaction as we continue
in our quest for excellence.
Peshawar Electric Supply Co.
Peshawar Electric Supply Company (PESCO), located in Peshawar provides

service of power distribution to over 2.0 million consumers of all civil districts of
N.W.F.P, Pakistan. At PESCO networks, we own and maintain N.W.F.P’s electricity
distribution system via 132, 66, 33KV sub-transmission lines, sub-stations and 11KV
& 440V low tension lines with distribution transformers that deliver electricity to your
home or business.
Quetta Electric Supply Co.
QESCO is operating as a Power Distribution Company and will act as Private

Organization on switching over from Public to Private Sector. QESCO is dealing with
Power Supply System in the whole Balochistan less District Lasbela. It is smallest in
terms of consumers but largest as it covers 43 % area of Pakistan. The peak
demand at the moment is 1177 MW evaluating measures and anticipated to be 1659
MW by the year 2015 with 8 % uniform annual growth. QESCO system is under

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stress due to huge number of Agri: Consumers contributing about 70-80 % of Power
Demand. Low voltage profile prevails due to long distances from Generating
Sources, besides availability of Single 220 KV sources from Guddu. The safe drawl
of power is 721 MW. To have additional source another 2x220 KV Dadu-Khuzdar &
DG Khan-Loralai Transmission Lines stands approved through out source funding at
the cost of Rs 5.437 and 5.089 billion respectively. Hopefully, the work completion in
totality is expected ending 2011
Karachi Electric Supply Company Ltd.
KESC is one of the city's largest employers: around 17,000 people currently
work for the company. It is also one of the oldest companies in Karachi and was
established in the city even before the creation of Pakistan in 1947. Incorporated on
September 13, 1913, under the Indian Companies Act of 1882, the company was
nationalized in 1952 but was re- privatized on November 29, 2005. KESC came
under new management in September, 2008; a significant number of professional
managers with experience in running utility and other large companies have joined
under this management and will be running it until the company is turned into a best
practice utility.
At present, KESC is the only vertically integrated power utility in Pakistan and
manages the generation, transmission and distribution of electricity. KESC covers a
vast area of 6,000 square kilometers and supplies electricity to all the industrial,
commercial, agricultural and residential areas that fall under its network
Karachi Electric Supply Company Ltd.
KESC is one of the city's largest employers: around 17,000 people currently
work for the company. It is also one of the oldest companies in Karachi and was
established in the city even before the creation of Pakistan in 1947. Incorporated on
September 13, 1913, under the Indian Companies Act of 1882, the company was
nationalized in 1952 but was re- privatized on November 29, 2005. KESC came
under new management in September, 2008; a significant number of professional
managers with experience in running utility and other large companies have joined

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under this management and will be running it until the company is turned into a best
practice utility.
At present, KESC is the only vertically integrated power utility in Pakistan and
manages people to the right jobs" and enhancing their levels of motivation / morale /
job satisfaction through different departments.

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DEPARTMENTS
Operation Directorate
The basic tasks performed by the operation directorate are:
Operation and maintenance of distribution system

Operation and maintenance of sub-transmission and grid systems
The Directorate consists of the following departments: -
O&M (T&Gs) Department

The Operation & Maintenance (Transmission and Grid Stations) - O&M
(T&Gs)
department headed by a Senior Manager is responsible for the electrical network at
132KV and 66KV and has under its purview 67 132KV and 15 66KV Grid Stations
and

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1515 KMs of 132KV and 628 KMs of 66KV lines. The department carries out its
functions in the field through the Superintending Engineer (Grid System Operation) -
SE
(GSO) by issuing guidelines, schedules and authorization for the preventive and
emergency maintenance programs, and carries out frequent inspection to ensure
compliance by the field organization.
O&M (Dist) Department
The Operation & Maintenance (Distribution) - O&M (Dist) department headed
by a Senior Manager, is responsible for the electrical system at 11KV and 400V.
Policy guidelines, schedules and authorization for maintenance of feeders are issued
to the 6 operating circles in the field headed by then Superintending Engineers and
frequent inspections are carried out to ensure compliance. The department also has
a civil engineering division headed by an Executive Engineer for the design,
construction and maintenance of all the buildings of MEPCO.
Technical Services Department

The Technical Services Department carries out the testing, calibration and
repair of all the energy meters, and also the installation of the maximum demand
meters. It is headed by 02 Managers who have 03 distribution circles each as their
areas of responsibility.
PDC Department
The Power Distribution Control Department headed by an Executive Engineer
has been set up to monitor the entire electrical network of MEPCO round the clock.
Information about the supply breakdowns, major equipment damages and
occurrences of importance are received through telephone and fax from the field and
are transmitted to the highest level in MEPCO and WAPDA, and then instructions
are passed for situation management.
Safety Department
The Safety Department headed by a Deputy Manager ensures that the
system is operated in compliance with the statutory provisions regarding safety for
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the employees and the public. Frequent inspections are carried out and safety
parades by the employees are held to ensure that working practices are safe and the
employees are adequately trained in safety measures. Every accident occurring to
an employee, member of public or animal is investigated meticulously and lessons
learnt and disseminated.
In order to update the assets information and to monitor the efficacy of its
operation, maintenance and safety policies and programs related to the entire
MEPCO electrical network, the following returns are prepared and issued.
Technical Services and Operations

M&T organization is one of the most important departments in MEPCO, the
company revenue depends on accurate functioning of its cash box i.e., energy
meter, M&T deals with checking installation, testing and re-calibration of energy
meters the importance of M&T can’t be over emphasized. It also attends any fault in
metering equipment- involving panels, MDI meter, C.Ts, P.Ts or cable and this
ensures continuity of supply to consumer using electricity in bulk. The low losses in
B-2 & B-3 units of MEPCO speak volumes for efficiency of M&T department. It has
dedicated and devoted staff and ready for duty at call at any time. This department
also enables operation wing to reutilize defective T&P meters and thus saving a
large amount of revenue by repairing these meters.
Material Management Directorate

Pre qualification and Registration of firms for supply of distribution / GSO
Material
Procurement of material through tender
Disposal of unserviceable material / vehicles through tender and auction
Formation of rate contract for regular supply of material with firms.
Arrangement of all kinds of material including T&P items from other DISCOs as per
requirement of field formations.

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Maintaining of minimum and maximum level of material in stores

Issuance of material as per requirements of field formation
(A) Private New Connection & Extension of Load

(B) Government Connection
(C) Housing Schemes
(D) Others Works
Training Centers
MEPCO also provides refresher courses to the employees for working in
computer based and modern systems. The newly induced employees are enrolled
for newly induction program and they are trained for MEPCO environment and
systems. Since the situation of Law and Order is very spoil in our county therefore
security staff of the MEPCO is also provided refresher courses to familiar with
advance security systems and arms. For this purpose a Training center is
established in 220KV Grid Station Bund Road Lahore. All the newly induced officials
and officers are required to pass their newly induction courses. The departmental
promotion exams and training is also performed in this center.
Customer Services Directorate
 The tasks assigned to Customer Services Directorate in MEPCO are:

Implementation of Commercial Policies
 Monitoring and management of recovery process
 Monitoring of line losses and preparation of accurate line losses statements
 Settling consumer disputes involving technical, commercial and tariff issues
 Processing and monitoring policies and procedures for Customer Services

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 Inspection of field formations regarding Commercial and Customer Services

matters
 Sanction, contract management and monitoring of specialized electricity

consumptions such as Cable TV networks and neon signs etc.
 Processing/sanctioning of various incentives for customers and employees

introduced from time to time.
 Effective marketing of electricity
 Tariff structuring and management of other tariff related matters
 Compilation of statistical data and management returns
 Co-ordination with Manager MIS for regulating effective billing program
 Surveillance and detection of electricity theft
 Taking effective measures for prevention of electricity theft

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HRM DEPARTMENT
MULTAN ELECTRIC POWER COMPANY (MEPCO)
MEPCO is one of the biggest Distribution Company of WAPDA. Its area of
operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and Tounsa
Sharif to Rajanpur and bordering with Sind, Balochistan and Khyber-Pakhtunkhwa.
MEPCO is the largest organization in the region; having 17193 employees. The
Charter of MEPCO is to provide the reliability, quality and safety of electric power
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supply to the consumers in its Jurisdiction. MEPCO is envisaged for the creation of
the resources and engineering plans for additions, renovation and augmentation of
the distribution system in order to achieve charter. MEPCO is putting efforts to make
it a viable and progressive utility to take care of consumer's power demand.
History of MEPCO
Under the WAPDA act 1958, WAPDA created eight “Area Electricity Board” in
all four provinces to distribute electricity. The distribution in Southern Punjab
including Bahawalpur, D.G.Khan and Multan Divisions were entrusted to newly
created Area Electricity Board Multan. The company which was supplying power to
the Multan area was known as MESCO. Defunct MESCO was taken over by
WAPDA in the year 1981. All these Area Boards were under General Manager (Op)
Distribution WAPDA Lahore. During 90s when new corporate culture was emerging
in Pakistan and public sector companies were being privatized, WAPDA also
envisaged the restructuring of its Power Wing. Accordingly 12 companies were
established and got registered from SECP. Out of these; 08 companies were
Distribution companies, 3 were Generation and 1 Transmission and Dispatch
Company. MEPCO was established w.e.f 01-07-1998 replacing the old Area
Electricity Board Multan. At present MEPCO is providing electricity to 13 districts of
Southern Punjab. It has more than 3332147 Domestic, 380661 Commercial, 40472
Industrial, 59584 Tube Well and 1685 other consumers.
EXISTING STRENGTH of Employees

Up to April 2010
S.# Category Distribution GSO Total
01 Officers Gr-18 & above 151 10 161
02 Assist: Managers 256 31 287
03 Assist: Managers (C.S) 25 0 25
04 LS-I 479 23 502
05 LS-II 408 5 413

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06 SSO-I 1 109 110
07 SSO-II 1 218 219
08 Foreman 3 21 24
09 LFM-I (Foreman) 35 0 35
10 LFM-II (Foreman) 37 1 38
11 Commercial Assistant 637 0 637
12 LM-I (Lineman) 1559 63 1622
13 LM-II (Lineman) 1497 83 1580
14 ALM (Asstt: Lineman) 4154 53 4207
15 Meter Reader 1637 0 1637
16 Bill Distributor 440 0 440
17 Chowkidar / NQ 850 40 890
18 Clerks all types 957 24 981
19 Other Staff 2016 1369 3385
Grand Total 15143 2050 17193

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ORGANOGRAM
HR Directorate MEPCO

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HR DEPARTMENT
Under direction from the Chairman and Chief Executive Officer of the
Company, HR &
Admn Director shall be responsible for the recruitment and placement of the "right
people to the right jobs" and enhancing their levels of motivation / morale / job
satisfaction through:
a) The provision of the necessary support systems and structures such as an

attractive compensation package, a fair and objective system for promotion and
career progression, training and development inputs to keep people in pace with the
changing demands of their jobs, etc.
b) The creation of a working environment and administrative support systems that

will promote employee performance and productivity.
More specifically the Human Resources Director shall perform following functions:-
a) A human resource philosophy, which shall govern the company’s actions
with respect to human resources management.
b) Prepare a Human Resource Plan to support the short and medium-term
goals of the company.
c) Develop the policies, guidelines and procedures for the following human
resources
 management concerns: -
 Manpower planning / budgeting
 Recruitment and Selection
 Appointment, deployment, re-deployment / transfers
 Compensation and benefits administration

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 Career planning and promotion
 Performance management
 Incentives administration
 Training and development
 Grant of Move over
 Grant of permission for higher education
 Consider and approve transfer requests.
 Sanction leave.
Duties / Functions of Manager (HR)

1. Recruitment
 Manpower Planning
 Recruitment and Selection
 Appointment and Development
 Creation of Posts and Offices
2. Promotions
 Preparation of Seniority Lists / Fixation of Seniority
 Career Planning and Promotions
 Performance Management
 Training and Development

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 Grant of Selection Scales
 Move Over
 Preparation and Circulation of Seniority Lists
 Maintenance of Service Books
 Pension Welfare Fund and GLI Cases
 Over Time / Off-Days Wages Cases
3. Transfer / Posting
 Transfer and Posting of Staff and Officer
 Vacancies Statement and Manpower Data
 Incumbency Statement / Register
 To Maintain List of Officer Stay Wise
4. Retirement
 Retirement and Resignation of Service
 Preparation of Pension Papers
 Actively supervise and Coordinate the Working of All Administration Staff
Posted under
JOB ANALYSIS
“Job Analysis is a process to identify and determine in detail the particular job duties
and requirements and the relative importance of these duties for a given job. Job
Analysis is a process where judgments are made about data collected on a job.”
The Job; not the person An important concept of Job Analysis is that the analysis
is conducted of the Job, not the person. While Job Analysis data may be collected

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from incumbents through interviews or questionnaires, the product of the analysis is

a description or specifications of the job, not a description of the person.
Purpose of Job Analysis
The purpose of Job Analysis is to establish and document the 'job
relatedness' of employment procedures such as training, selection, compensation,
and performance appraisal.
Determining Training Needs

Job Analysis can be used in training/"needs assessment" to identify or develop:
 training content
 assessment tests to measure effectiveness of training
 equipment to be used in delivering the training
 Methods of training (i.e., small group, computer-based, video, classroom...)
Compensation
Job Analysis can be used in compensation to identify or determine:
 skill levels
 compensable job factors
 work environment (e.g., hazards; attention; physical effort)
 responsibilities (e.g., fiscal; supervisory)
 required level of education (indirectly related to salary level)
Selection Procedures
Job Analysis can be used in selection procedures to identify or develop:
 job duties that should be included in advertisements of vacant positions;

 appropriate salary level for the position to help determine what salary should
be offered to a candidate;
 minimum requirements (education and/or experience) for screening
applicants;
 interview questions;

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 selection tests/instruments (e.g., written tests; oral tests; job simulations);

 applicant appraisal/evaluation forms;
 orientation materials for applicants/new hires
Performance Review
Job Analysis can be used in performance review to identify or develop:
 goals and objectives

 performance standards
 evaluation criteria
 length of probationary periods
 duties to be evaluated
Methods of Job Analysis
Several methods exist that may be used individually or in combination. These

include:
 review of job classification systems

 incumbent interviews
 supervisor interviews
 expert panels
 structured questionnaires
 task inventories
 check lists
 open-ended questionnaires
 observation
 incumbent work logs
A typical method of Job Analysis would be to give the incumbent a simple

questionnaire to identify job duties, responsibilities, equipment used, work
relationships, and work environment. The completed questionnaire would then be
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used to assist the Job Analyst who would then conduct an interview of the
incumbent(s). A draft of the identified job duties, responsibilities, equipment,
relationships, and work environment would be reviewed with the supervisor for
accuracy. The Job Analyst would then prepare a job description and/or job
specifications.
The method that you may use in Job Analysis will depend on practical concerns such
as type of job, number of jobs, number of incumbents, and location of jobs.
What Aspects of a Job Are Analyzed?
Job Analysis should collect information on the following areas:
 Duties and Tasks The basic unit of a job is the performance of specific tasks
and duties. Information to be collected about these items may include:
frequency, duration, effort, skill, complexity, equipment, standards, etc.
 Environment This may have a significant impact on the physical
requirements to be able to perform a job. The work environment may include
unpleasant conditions such as offensive odors and temperature extremes.
There may also be definite risks to the incumbent such as noxious fumes,
radioactive substances, hostile and aggressive people, and dangerous
explosives.
 Tools and Equipment Some duties and tasks are performed using specific
equipment and tools. Equipment may include protective clothing. These items
need to be specified in a Job Analysis.
 Relationships Supervision given and received. Relationships with internal or
external people.
 Requirements The knowledge, skills, and abilities (KSA's) required to
perform the job. While an incumbent may have higher KSA's than those
required for the job, a Job Analysis typically only states the minimum
requirements to perform the job
Importance of Job Analysis

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Job analysis helps in analyzing the resources and establishing the strategies
to accomplish the business goals and strategic objectives. Effectively developed,
employee job descriptions are communication tools that are significant in an
organization's success.
The main purpose of conducting job analysis is to prepare job description and job
specification which helps to hire right quality of workforce.
Job Analysis can be used in training to identify or develop, training content, and
assessment tests to measure effectiveness of training, equipment to be used in
delivering the training and methods of training.
Job Analysis can be used in compensation to identify or determine: skill levels,
compensable job factors, work environment, responsibilities and required level of
education.
Job Analysis can be used in selection procedures to identify or develop job

duties that should be included in advertisements of vacant positions, appropriate
salary level for the position to help determine what salary should be offered to a
candidate, minimum requirements for screening applicants, interview questions,
selection tests/instruments (e.g., written tests; oral tests; job simulations), applicant
appraisal forms and orientation materials for new hires Job Analysis can be used in
performance review to identify or develop goals and objectives, performance
standards, evaluation criteria, length of probationary periods, and duties to be
evaluated.
Conclusion and Recommendations
The Manager HR is a very important position in MEPCO. The position holder

has to perform all the HR functions including recruitment, training, orientation,
posting transfer, promotions, career planning, performance appraisal, disciplinary
actions and general services.
With all these responsibilities, the manager HR has also the charge of
manager administration and Sports committee. In absence of HR Director, the
manager HR has to take care of that position too. This whole thing may create a
mess.
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EMPLOYEES BENEFIT PROGRAMMES

Medical
In order to provide medical services to all the WAPDA employees and their
families WAPDA has set up an elaborate network of 14 hospitals land 39
dispensaries located at different stations and cities in the country in addition to
WAPDA central hospital at Lahore that is the headquarters of the organization.
WAPDA hospital complex provides comprehensive medical care and treatment, both
for in-door and out-door patients, with specialized attention and treatment in almost
all- medical disciplines. The smaller medical units look after the requirement at
various WAPDA projects and other towns where WAPDA officers have large
concentration. All WAPDA hospitals and dispensaries attend to over 1.60 million
patients during report year in their out-door departments while their annual
emergency and casualties attendance exceeds 0.101 million. Besides the medical
services include admission for in-door treatment to over 19,498 patients during
report both in WAPDA and non-Wapda hospitals. Over 40526 surgical operations
are performed in WAPDA hospitals in additions to specialized treatment for cardiac
disease and other serious and other serious surgical medical cases.
Education

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In order to promote and maintain education in various Wapda colonies and

projects, WAPDA has set up 45 educational institutions which provide education not
only to children of employees stationed in the respective areas but also to the
adjacent non- WAPDA population. These institutions have performed exceedingly
well with some remarkable results.
Pension
WAPDA employees are entitled to full pension on reaching the age of

superannuation subject to completing their minimum required service. In financial
year 2000-01, as many as 7,875 pension cases were processed involving payment
of Rs. 2210.242 million.
Housing
In order to help WAPDA employees build their own houses a number of

cooperative housing societies have been set up in various cities which purchase land
and develop residential plots for allotment to WAPDA employees. The societies at
Lahore and Gujranwala have been completed while work on societies at
Sheikhupura, Faisalabad, Peshawar, Quetta and other towns is in progress.
Insurance
WAPDA provides Group life insurance to all of its employees and arranges
payment of sizeable insurance amounts to the dependents of WAPDA employees
who expire during service. During 2000-01 over Rs. 90 million were paid to the
families of 758decreased employees.
Training
WAPDA is a second largest organization in Pakistan. To maintain tempo of

work in such a large organization, it is imperative to have standing arrangements for
management and technical training of the officers and staff.

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Training activities are conducted in WAPDA to impart basic and advance knowledge
to all officers and staff during different stages of their career. A number of training
institutes are functioning at various places.
 WAPDA Staff College, Islamabad.

 WAPDA Engineering Academy, Faisalabad
 Regional Training Centers (RTCs) one each in Distribution Companies.
 Technical Services Group, Lahore with Training Centre at Terbela.Gatti
(Faisalabad) and Kot Lakhpat Lahore
 Hydel Training Centre Mangia
During the year 2006-07, the existing training centers imparted training to 15,235
WAPDA personnel of which 1,359 were officers (Grade 17 to 20) and the rest
comprised supervisory staff of different lower grades. Besides, 185 participants were
trained from Government/ Semi Government Departments, Autonomous bodies and
various Industries and Private Organizations

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SWOT Analysis
Strengths
 One Window service facility at each Sub-Division
 Establishment of Computerized Customer Service Centers in each Circle
 Central Chief Executive Customer Service Center
 Positioning of Field offices near geographic center of their jurisdiction and co-
location of XEN & RO offices
 Printing of 12 months billing detail on bill
 Printing of SDO's and XEN’s telephone numbers on the bill
 Well defined and uniform policy for detection bills.
 Enhanced allocation for Development and Maintenance.

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 More branches of scheduled banks and post offices authorized to collect bills
 Establishment of Model Sub-Divisions
 Restructuring of Stores to ensure prompt availability.
 Establishment of Marketing Cell and Task Force at MEPCO HQ to facilitate
industrial/commercial consumers
 The MEPCO top management is the combination of both experience and
young energetic professionals which are providing to be the real strength of
MEPCO.
 MEPCO website provides every information about MEPCO to the customers
and investors.
 MEPCO has equipped with the latest technology.
 MEPCO has good relation with different departments.
 The MEPCO employees are locally so, the turnover rate is low.
 The MEPCO has efficient internal audit department, which keep check and
balance.
 The MEPCO has experienced of strategic apex and managerial skilled staff.
 Full support from Federal Government.
Weakness
 Large time required for processing any project/job
 Communication system between employees is not sufficient
 Customer services centers required well trained and loyal staff
 Lake of loyalty, consistency and regulatory in the staff
 People has less trust over company
 Customer’s guideness is not sufficient
 Customer’s complaint system is very old and execution on the complaint is
very fatigue.
 Customers and employees relation is very poor.
 The administrative cost of the company is very high due to which the
profitability of the company decreases.
 There is still improvement of technology in the MEPCO like in computers.

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 The customer services are not up to mark they have to improve the customer
services to satisfy the customers.
 The divisions are not well furnished they have the need to improve them.
 Telecom and Media revolution.
 Dependency on suppliers of power generation equipment.
Opportunities
 Corporatization and commercialization goals as per plan.
 Establishment of mobile customer services center at each circle.
 Distribution system rehabilitation under System Augmentation Program (SAP)
for reduction in energy losses.
 Timely execution of development works and LT/HT Proposals under SAP.
 New Grid Stations and augmentation/extension of existing Grid Stations and
Transmission Lines
 Establishment of Computer Billing Centers.
 Conversion of petrol vehicles to CNG.
 Purchase of new vehicles for field formation.
 The MEPCO is situated in the region where the customers are large in
quantity and other necessary related product is easily available in the market.
 There is no competitor in the local market, there is a big opportunity to get
more share.
 Buyers of MEPCO services are easily available in the local market.
 The extension plan of divisions by the MEPCO is very good to capture the
market.
 The MEPCO has maintained better relationship in the market which helps the
MEPCO to increase the customers.
 The strategies of MEPCO are very strong which help them to get advantages
over the competitors.
 Research and development in power generation equipment.
 Natural resources to increase water resources and cheaper power.
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 There are rapid changes in technology of power generation and to coup it

ministry will have to be planning for the future plans keeping in mind the
changes.
 New power projects have the bargaining power for higher prices keeping in
view the high demand and supply gap in power sector.
Threats
 Since MEPCO is a public organization, therefore political environments are
Decreasing the efficiency of the company.
 Some other competitors like GEPCO have their own power
Generation system; therefore MEPCO is dependent on those companies.
 In future it is expected that the market value of the MEPCO will be decreased.
 Politics in the employees and labor unions are very awful for company.
 Government’s pitiable projects also spoiling the publicity of the MEPCO
 The overall performance of the MEPCO also decreasing.
 One major threat to the MEPCO is increasing number of customers day by
day.
 Due to fluctuation occur in the supply is permanent threat to the MEPCO.
 There is always a threat the government may impose some duties on the
MEPCO.
 Another threat to the MEPCO is change in day by day technology.
 Withdrawal of support from suppliers.
 Curtailment of budget.
 Obsolescence of strategic equipment.
 There is not a long list of suppliers in power sector and the suppliers enjoy
monopoly to some extent and they can change higher and delay supplies as
there is long waiting list for equipment supplies.

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Porter’s Five Forces Analysis
The porters five forces comprises on the following factors

 Supplier’s power
 Threats of Substitute
 Buyers Power and
 Barriers to entry.
But in the case of MEPCO the competitors are limited to provide their services in
the defined areas of the country. They cannot provide their services beyond the
limitations. So the MEPCO is responsible for providing the services in there relevant
areas therefore no other substitute or there is no any new company, which can
provide electric supply.

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Political Factors
The political situation of Pakistan is not satisfactory. Due to the rapid change
in the Government every government sets its own new trade policies. MEPCO is
under PEPCO/WAPDA which is a public sector organization and is controlled by the
Ministry of Water and Electricity of Pakistan. Raja Pervez Ashraf is Federal Minister
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of this ministry. As WAPDA is fully operated by the Government. Due to this political
interference in WAPDA has increased and the political persons and policies directly
affect the WAPDA which is not only harmful for the WAPDA but causes inefficiency
and mismanagement. Employees are hired on political basis, due to this reason
inefficient work force is hired which causes corruption and mismanagement. Due to
number of external political factors power-generation is somewhat restricted. In mid-
2000, Pakistan's government stated that it would permit a natural gas pipeline linking
Iran's massive reserves to rival India across Pakistani territory. Pakistan would earn
transit fees for Iranian gas supplied to India and also would be able to purchase
some gas from the pipeline when and if its own demand was sufficient. While Iran
and Pakistan have shown great interest in the project, India has been reluctant to
move forward as long as political and military tensions with Pakistan over Kashmir
persist. The recent escalation of tensions between the two countries has made any
movement on the project even more unlikely, though a feasibility study is still
underway.
Govt. should apply sustainable policies for continues and sustained growth of
WAPDA.
Economic situation:
The economic condition of Pakistan can also affect the foreign investors
increasing inflation rate make the cost of production high and thus reduce the profit
margin.
Investment activity in the country has already been slowed down and further
raise in the power tariff would add to the problem. Overall economic activity in the
country would remain sluggish if the investment remains blocked.
With the industrial power rates already too high, Pakistan was unable to
compete other regional countries in the international export market. "Target of $10
billion export target is hard to achieve with such high power rates". Industries all over
the world get power on comparatively lower rates, but it was other way around in

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Pakistan "Under the TWO regime we have to support the competitiveness, and in the
presence of such exaggerated power rates our industry is not in a position to
compete with other Asian states".
Social situation:
Power tariff in Pakistan are related with the poverty, and raise in the tariff
would automatically push up the poverty. Poor lot in the country was already cutting
down the food intake, and another hike in the power tariff would worsen this situation
in a country where calorie-based poverty is on the rise.
Technological factor:
The energy demand in Pakistan is likely to increase steadily. Consequently,
the current level of dependence on fossil fuel for electricity production will come
under severe strain because of the high depletion rate of the fuel. Currently over 70
percent of the total electricity generation in the country is from fossil fuels, as shown
in Table 1 below for the year 2000-2001. In the year 2000-2001 alone, the total fossil
fuel consumption in electricity generation amounted to 11.94 million tons of oil
equivalent (TOE).
The fossil fuel resources, however, are not expected to last for many years. In
fact at the current rate of use of oil and gas for electricity generation, the existing oil
reserves, if put to produce electricity only, can last for a little over six years only, and
the gas reserves for about 75 years. According to some estimates, a large
hydroelectric potential—to the tune of around 30 gigawatts—exists, which is likely to
form the backbone of future electricity generation. But there are issues—
environmental as well as political—that makes large-scale dams controversial. The
mini- and micro-hydel plants, besides being too far removed from the national grid,
add up to a small net generation, serving only some local communities. Even with a
greater focus on microhydel plants, the benefit will remain confined mainly to the
northern mountainous areas.
Among the various renewable energy options, wind and solar energy stand
out for a larger and possibly grid-scale potential. Wind energy potential is currently

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being charted out by a state agency and in view of the sharp drop in installation
costs, may help attract private investment in power generation. The potential is
however likely to remain significant only in the coastal areas, mostly far away from
the national electricity grid, and perhaps only to the tune of a couple of gigawatts.
Solar photovoltaic systems are prohibitively expensive in terms of installation
costs. Power from them is also available intermittently—only when energy from the
sun is available. On the other hand, PV systems are free of the ever-rising costs of
input fuel.They also incur much less operation and maintenance costs and are
supposed to have a longer lifetime than, for example, a fossil fuel power plant. Thus
using solar-PV power looks uneconomical in the short term, but may be profitable in
the long term. It is, therefore, interesting to identify the factors that can make
investment in solar PV power generation acceptable.
There are several technological alternatives for electricity generation. While
the product - electricity supplied to the end consumer- is uniform, different production
techniques do make a difference on the basis of final cost, reliability of supply and
quantity of polluting emissions. There are different primary energy sources such as
thermal, nuclear or renewable energy which make use of different installations and
transformation processes. Investment in technological processes is generally for the
long term and is virtually irreversible.

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My Working in MEPCO
During my work in MEPCO Division I was given task, for improvement of the
area electricity distribution system, whether it relates to LT voltage system or it is HT,
that is high tension (11KV) system through installing capacitors in the system to be
improved.
I did that practically on the line whether these are of 415 volts, 11 K volts or it is 132
KV lines.
The permission was granted for that and requested by Dy.Manager (OP)
MEPCO Division Haroonabad to the technical advisor, of PEPCO for MEPCO Multan

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and provide me chance for conveying my views and experience to the

Dy.Manager(OP) MEPCO Davison Haroonabad and other engineers.
The company has purchased 132 KV, 11KV and 415 KV capacitors to reduce
I2R losses and three sets of each bank was drawn by the concerned 11 KV feeder
incharge (Line Superintendent) and was allowed for experiment use by me in
coordination with and supervision of Dy.Manager (OP) Haroonabad.
The capacitors are basically two metal plates with opposite charges (+Q,
-Q) with a dielectric in between so that current cannot pass across and hence
voltage only stored.
It means, improvement of system by installing capacitors of rated voltages
results in increasing voltage at a long length already existing electricity lines.
For that, ultimately line losses are to be reduced technically.
Line Losses = I2R
Where I = Current
And R = Resistance of Conductor
R = Resistance depends on the length of the conductor and is directly proportionate
to the electricity line length and inversely proportionate to the area across section of
the conductor.
That is:
RαL
And
R α 1/A
Combining these to relations we have formula
R α L/A
Or
R = α L/A
Where α = constant of proportionality resistivity
And L= Length of Conductor
A = Area across section of conductor.
In simple words, it means:
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 More length, more resistance

 More thick, the conductor, the less resistance will be there and vice versa.
So I choose site for 11KV feeder of City Haroonabad after calculations as use
capacitors in circuit at different locations and I did that through provided line staff by
the Dy.Manager (OP) Haroonabad.
The sketch for the 11 KV feeders where I installed capacitors is shown below.
132 KV 132/11 KV I3 I4 I5 I6
I1 I2
C1 C2 C3
C1, C2, and C3 are three capacitors, I installed for improving the system. I did
that after getting shut down approved for the said feeder by concerned line
superintendent from the concerned Grid Station as it was necessary for the safety
measures.
Before shut down and installing capacitors, I have noted the running current at
different locations as follows:
I1 = 87.5 amperes
I3 = 89.02 amperes
I5 = 86.54 amperes
These readings were taken from amperes meters at panel of the Grid Station.
After, installing capacitors, I cancelled the shut own of grid and noted the current
amperes again after the capacitors accordingly and found as follows.
I2 = 98.52amperes
I4 = 107.43 amperes
I6 = 102.52 amperes
This clearly shown by comparing above six values of currents those current values
(due to voltage improvement) after the capacitors have increased as:
I2 > I 1
I4 > I 3
I6 >I5
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So it was an experiment and was successfully appreciated by the technical officers

of the office of the Dy.Manager (OP) Haroonabad.
So system of MEPCO –WAPDA, HT, and LT lines may be enhanced and hence
improved by installing capacitors on every lengthy feeder lines, particularly at
villages feeding lines and also at overloaded lines.
The work was appreciated by the Manager (OP) MEPCO Circle and suggested to
the higher ups for purchasing of high voltage capacitors, so that, in this way the
voltage problem at village areas and load areas may be improved. This can also
have an impact on revenue generation of the MEPCO.

MBA (E)
Conclusion
I got a lot of experience in MEPCO. During my working I come to know that the
different units are working under one umbrella. I have noticed that they are getting
the benefits by minimizing different costs which earlier they were paying due to lack
of technology of computer.
The MEPCO has latest technology for its services and they are serving the local
market very well. MEPCO has open door policy for all tackle all problems upfront
Merit, Justice, Fair play be the hallmark Transparency in all fields Accountability of
everyone. The Multan Electric Supply Co. is a big organization. It provides electricity

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to the consumers. It is performing his job very well but certain improvements and
developments are required. This organization has vertical management system. The
top-level management has ample potential to make this company as an excellent
company. The middle level and bottom level management is also very hard working,
punctual and geniuses. But unfortunately the provision of equipments for
maintenance purposes, the government’s lengthy planes, and inexperienced
customer services department is spoiling the image of the company. The demand of
electricity of the consumers must be fulfilled at top priority. Necessary actions should
be taken against the span between the demand and supply. The response of the
employees on the failure of the supply must be enhanced. Following conclusions are
described here:
 Increase in Raw material
 Slow speed of implementation must be eliminated
 Make exact estimate of the demand
 Reduce the political factors in MEPCO’s projects and system augmentations.
Regarding De-Marketing, WAPDA or MEPCO is going without planning, as being
monopoly of WAPDA; it should emphasis on energy saving measures in different
ways like:
 Reducing technical losses
 Reducing non-technical losses like reduction in theft of energy by different
tariff consumers.
In this way, the Extra revenue generated may be used on different WAPDA
Generation Projects, so that energy conservation may use for extra consumers at
villages where electricity in not still provided.
Similarly electricity or energy may be saved for use in industries, by giving
awareness to domestic consumes for saving energy through different ways.
 The progress of different companies of WAPDA like MEPCO must be
compared with another company with good results regarding recovery and
line losses, inspite of giving targets to one company itself.

MBA (E)
 As no any competitor of WAPDA is there, so should be emphasis on

uninterrupted power supply to all kind of consumers at reasonable prices per
KWH. This can be done by:
o Production of electricity by gas and fuel.
o Constructing naturally designed hydel dams like Kala Bagh Dam.
o Small hydel dams must be constructed and in this way, Vision 2025
plan of WAPDA must be taken in consideration to fulfill future power
needs.
Suggestions
The following are some suggestions about the MEPCO:-
 Management should try create more understanding between different
department is to increase their productivity.
 The top management should give the authority and flexibility to every
manager to make decisions according to the situation at any time and in the
absence of the top manager.
 A proper training should be given to the employees and workers to enhance
their skills to increase their productivity and utility of the MEPCO.

MBA (E)
 All the duties and responsibilities of the employees and the workers should
be clearly defined.
 The computer technology should also be used in decision making as well as
in storing and feeding the data.
 There should be decentralization in decision making.
 The management should recruit right person for right job.
 The management should hire multi skilled workers to get economy of scales.
 The employees must be well trained for customer services issues.
 The extra equipment for maintenance and complaint attendance must be

provided to the staff.
 The communication gap between senior management and lower technical,

maintenance staff must be improved.
 The organizational hierarchy inside the organization must be reduced.
 The application processing system must be improved. For complaints and

other customer related tasks, online computerized system should be
arranged.
 The trust of the customers must be retained.

 The DISCOS should purchase all rating capacitors 11 KV, 132 KV and 415
KV for improving voltage of the lines.
 Technical assistance should be given to the line staff regarding power factor
improvement through capacitors.
 For new connection applicants of industries, a condition for installing
capacitors at factories must be imposed on industrialists to avoid voltage
drop due to heavy load.
 A penalty should be imposed on industrialists who are not using capacitors.

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FINANCIAL REVIEW OF MEPCO

Fin
ancial Overview
FINANCIAL OVERVIEW OF MEPCO

FINANCIAL RESULTS DURING 2008-2009
Revenue (Rs. in Million)
Sale of Electricity 62,745.023
Rental & Service Income 182.537
Amortization of Deferred Credit 1,009.089
Other Income 1,592.379
Total Revenue 65,529.028

EXPENSES
Cost of Electricity 61,886.892
Operating Expenses (incl depreciation) 6,637.902
Financial Charges 304.739
Tax -
Total Expenses 68,829.533
Loss for the year (3,300.505)

FINANCIAL POSITION AS ON 30.06.2009
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ASSETS (Rs. in Million)

Tangible Fixed Assets 39,704.222
Long Term Advances / deposits 23.281
Current Assts 26,123.094
Total Assets 65,850.597

Equities & Liabilities
Share Capital & Reserves 4,779.078
Long Term liabilities 16,220.889
Current Liabilities 44,850.630
Total Expenses 65,850.597
FINANCIAL REVIEW OF WAPDA
WAPDA Power Wing (Hydroelectric) is operating under the generation license

granted by the power regulator ‘NEPRA’, for operation, maintenance and
development of hydel power resources in Pakistan. The installed capacity of existing
hydel power plants in operation is 6,444 MW. Major hydro plants include Tarbela
(3,478 MW), Ghazi Barotha (1,450 MW), Mangla (1,000 MW) and Warsak (243 MW).
Capacity
During the period under review, WAPDA Power Wing (Hydroelectric) has
made available its full capacity of 6,444 MW, with water outflow limitations.
Operational Performance
The Net Electrical Output (NEO) for the year stood at 27,363 MKWh,
decrease by 859 MKWh over the same period last year. This decrease in energy is
due to reduced water indents during the year 2008-09 particularly from Tarbela
power station.

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Financial Performance
Net profit of WAPDA for the year under review stood at Rs.12,521 million,
which is less than previous year figure of Rs.12,615 million. Sales revenue during
the period comes to Rs.29013 million consisting variable charge of Rs.8 447 million
and fixed charge of Rs.20,566 million as per NEPRA approved tariff. Despite of
decrease in net electrical output, sales revenue has increased by Rs.546 million from
the previous year’s figure of Rs.28,467 million due to the fact that new tariff was
notified in September 2007 and was applied in last three quarters of the FY 2007-08
only, whereas, in FY 2008-09 new tariff was applied on full year.
Operation & Maintenance expense stood at Rs.3,011 million, which has

increased by Rs.482 million from the previous year figure of Rs. 2,760 million.
Employees cost during the period was Rs.2,136 million, consisting of pay and
allowances Rs.1,125 million and employees’ benefits Rs.1,011 million.
This is Rs.262 million higher than last year because of increase announced by
Government of Pakistan. Admn cost for the year stood Rs.336 million as compared
to last year figure of Rs.214 million. Plant repair and maintenance expenses for the
year were Rs.539 million as against Rs.242 million of last year. Depreciation charge
for the period worked out to Rs.3,454 million, for the fixed assets valuing Rs.159,378
million (gross value). WAPDA is paying Rs.6,000 million annually, on account of net
hydel profit, to Government of NWFP as adhoc payment. Water Usage Charge
amounting to Rs.695 million has accrued to Government of Azad Jammu & Kashmir,
at the rate of Ps 15 per unit of electricity generated by Mangla Power Station, as
against Rs.685 million paid last year. The increase in the water usage charge is due
to more generation by Mangla Power Station.
Cash Flow
During the period under report, CPPA has made payment of Rs.20,429 million
against billing of Rs.29,013 million. In order to make partial redemption of foreign
currency loan of US $ 125 million, arranged through Standard Chartered Bank,
Rs.2,038 million was borrowed as Bridge Financing from WAPDA Equipment
Protection Organization. For financing of capital expenditure of Khawar project,

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external loans of Rs.1,522 million, obtained from Islamic Development Bank (IDB)
were also utilized during the year. Funds received from CPPA during the year were
mainly applied towards payment of net hydel profit to Government of NWFP and
WUC to
Government of Azad Jammu & Kashmir, payment of markup on Running
Finance/Short term loan on WAPDA on behalf of PEPCO entities and operating
costs. Capital Expenditures of Rs.8,174 million WAPDA Hydroelectric for the year
are in line with Water Resources and Hydro Power Development Vision 2025
Programme envisioned by the Federal Government. New loans of Rs.2,540 million
were obtained for financing of Khan Khwar, Allai Khwar, Dubair Khwar, Jinnah Hydro
Power projects which are near to completion.
Assets
Fixed Assets in Operation (gross value) as on June 30, 2009 remained at
Rs.159,378 million, against the last year’s closing balance of Rs.160,241 million. The
value of net fixed assets in operation has also decreased from Rs.127,642 million to
Rs.124,104 million. Increase in Capital Work in Progress of Rs.8,174 million is
mainly because of capital expenditure on development projects in progress i.e. Khan
Khwar, Allai Khwar, Dubber Khwar and Jinnah hydropower. Long Term Investment
of Rs.186,913 million mainly comprise investment of Rs.182,859 million (deposit for
shares) in ex-
WAPDA Companies, comprising nine DISCOs, four GENCOs, NTDC and
Neelum Jhelum Hydro Power Company. This amount depicts the net worth of the
formations as a result of the transfer of assets and liabilities from WAPDA to the
corporatized entities. The companies will issue shares to WAPDA for this investment
after BTA closing date i.e. June 30, 2008, and accordingly WAPDA will issue shares
in the name of President of Pakistan, reducing the investment of GoP in Residual
WAPDA Power Wing. Store and spares worth Rs.1,442 million relates to hydel
power stations and has no significant change in the stock during the period under
report. Trade Receivable from NTDC are Rs.151,371 million. This includes Running
Finance facility/short term loan of Rs.48 billion taken by WAPDA on behalf of

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PEPCO entities which GoP has agreed to settle as its own, and this liability is to be
transferred to Power Holding Company and WAPDA’s receivables from CPPA will be
reduced accordingly. Moreover, Rs.31 billion will be adjusted against KESC dues.
Advances, Deposits and other receivables amounting to Rs.31,114 million mainly
consists of receivable from the associated companies/formations. Cash and bank
balances as at June 30, 2009 was Rs.772 million, which was significantly less than
the last year figure due to suppressed release of funds from CPPA against power
sale billing.
Capital & Liabilities
Equity balance of Rs.359,454 million as at June 30, 2009 comprised of
Rs.294,147 million including share capital, revaluation surplus and investment by
Government of Pakistan, whereas, Rs.65,308 million represent accumulated profit of
WAPDA Power wing.
Government of Pakistan extended grants of Rs.8,769 million to Residual
WAPDA Power wing from time to time for financing of various projects as well. Long
Term Loans amounting to Rs.49,196 million were outstanding as on June 30, 2009
as detailed below: Rs.4,766 million has been reported separately as current maturity
under current liabilities including Rs.4,605 million of FRL and Rs.161 million of CDL
Liabililty under Ijara Financing relates to WAPDA Hydroelectric development projects
and has been increased from Rs.8.0 billion to Rs.16,000 million, the detail of which is
as under:
Short term borrowings contains Rs.47,163 million outstanding short term bank loans
taken on behalf of DISCOs and Bridge Financing Loan. Government of Pakistan has
agreed to transfer the said loan to power holding company during current financial
year.
Short term liabilities Rs.35,476 million include pending Government of
Pakistan Debt Service Liability comprising Rs.20,506 million pertaining to previous
years and Rs.11,606 million pertaining to FY 2008-09, besides 4% Return on Assets
payable to Provinces and other liabilities accrued because of payment default by
NTDC / CPPA against power sale by WAPDA. Creditors Accrued & other Liabilities
of Rs.22,229 million mainly includes due to Corporate Entities & other formations
and Project Clearing accounts.
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References and Sources Used

 Website of MEPCO/WAPDA
 Technical brushers of MEPCO
 Personal meetings with different mangers
 MEPCO new induction training program booklets
 Standard Operating Procedural (SOP) documents
 Annual Reports published by MEPCO for FY 2009
 Technical data prepared and collected by MEPCO’s library.

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Intrnship Report On Wapda

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INTERNSHIP REPORT ON MEPCO (WAPDA) Marketing 2010

A Directory to the Report

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 1

Some words about the Report

A Short Thanks Giving

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 3

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 4

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 5

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 6

It was assigned me to write an internship report of the MEPCO to view the

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 7

Purpose of the study

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 8

 To objectively observe the operations of MEPCO in general and the

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 9

MEPCO is putting efforts to make it a viable and progressive utility to take

Area Electricity Board Multan

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 11

government, elected representatives, industrialists, agriculturalists and other interest

power in area of responsibility, in order to alleviate

the poverty, improve quality of life and make the

Industrial and Agriculture Sector competitive in the

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 12

electric power to the people at affordable

price, retaining financial viability of the

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 13

 To establish, construct and operate reliable electricity distribution network

 Open door policy for all

In the long run the company desires to become a profit earning

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 15

Organizational Structure of Mepco

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 16

Distribution Transformers 109,381 Nos.

Jurisdiction Map of MEPC

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 17

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 19

Formations under Jurisdiction

1. All Managers Operation.

Mr. Pervaiz Akthar Shah Khaga

General Manager / (Tech) Director

Mr. Shafqat Asghar Tahir

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 20

Chief Engr: / (CS) Director

Mr. Hamayon Khan

Formations under Jurisdiction

1. (O&M) T&G

Mian Iftikhar Ahmed

HR & Admn Director

Syed Mushtaq Hussain Bukhari

Formations under Jurisdiction

Industrialist / MD, Maqbool Textile Mill,

Chowk Sarwar Shaheed, Muzaffargarh.

Chief Executive Officer

Mahmood-ul-Hassan Abbasi | The Islamia University Bahawalnagar Campus 22

Mr. Jalal-Ud-Din Malik

General Manager (NTDC),

WAPDA House, Lahore.

Mr. Muhammad Azhar Iqbal