Fesco to add 500MVA in distribution system

Faisalabad: Faisalabad Electric Supply Company (Fesco) wil1 add 500 MVA capacity in its distribution system during this year with the co-operation of Asian Development Bank, said Ahmad Saeed Akhtar Chief Executive Fesco.

Addressing a meeting of GSC (Grid Stations Construction) Directorate here, he said that physical work has already been started on 7 grid stations and 8 transmission lines within the jurisdiction of this company under Power Distribution Enhancement Investment Programme.

He said that grid stations at VAC (Value Addition City) and Sammundri would become operational during this month while work on 132-KV Khannuana and Buland Hill Chak No.128 Junubi has also been expedited to ensure its completion before coming summer season. He also directed to complete work to fix new capacitors provided by the government of Pakistan.

Earlier Sheikh Muhammad Ashraf Manager GSC briefed the Chief Executive through slides and video presentation and said that power transformers of 20/26 MVA capacity have been installed at 132-KV Sammundri, Tandlianwala, Haveli Bahadar Shah, Bhalwal and Bhakkar while another seven defective power transformers have also been repaired and installed in Mureedwala, Chak No.120 Buland Hill, Sammundri Road, Barana, Bhowana, Kala Bagh and Peplan.

He said that 2 power transformers of 40 MVA have already been erected at 132-KV Old Thermal and UAF (University of Agriculture Faisalabad) grid stations to stabilise distribution system in various city areas of Faisalabad.

Fesco distributes and supplies electricity to about 2.44 million customers within its service territory with a population of over 15.5 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 districts.

Fesco is one of the best electricity distribution companies in Pakistan in terms of operational performance, as it has low degree of distribution losses 11.5% and a high rate of bill collection.

According to ADB report, Pakistan's power distribution sector faces three major challenges: (i) the system reliability prevents continuous supply, (ii) high distribution losses, and (iii) severe financial shortcomings. The system is unable to meet the current demand, and is already falling behind power generation expansion targets. To enable the increased generating capacity to support the Government's economic growth targets, the power distribution system (in addition to the power transmission system) must (i) be strengthened to meet current system requirements and fulfil demand, and (ii) keep pace with the increasing customer demand.

ADB report pointed out that ageing, overloading, and poor maintenance negatively impact the power distribution system. It is unreliable, and at times there is load shedding and delivery of supplies outside statutory voltage limits. The system needs immediate rehabilitation, augmentation, and expansion to meet customer demands and system security requirements. Ensuring the safe and reliable distribution of electricity will be a major challenge for Pakistan.

ADB report pointed out that the financial weaknesses affecting the power distribution sector are severely impacting the financial sustainability of all DISCOs and the power sector in general. The financial shortfall in distribution is the primary cause of circular debt problems in Pakistan. There is an urgency to resolve the financial weaknesses to ensure (i) elimination of the circular debt, (ii) reduction in the requirements for subsidies, and (iii) development of financially sustainable DISCOs. Focusing on the future investment requirements of DISCOs, it would be difficult to secure financing if the current financial parameters and procedures continue, ADB pointed out.