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Writing off bad debts: USAID suggests uniform criteria for Discos
 admin May 3, 2010, 06:05:40 AM 

ISLAMABAD (May 18 2009): USAID consultants have proposed to National Electric Power Regulatory Authority (Nepra) to work out symmetrical criteria for all power distribution companies regarding bad debts and write off of receivables from electricity users.

Power distribution companies have to recover pending dues from their clients, and USAID has proposed to Nepra to evaluate the criterion for recovery of bad debts and write off of receivables. The consultants have said that there is need for symmetrical criteria applicable on all power distribution companies (discos) in this regard.

While discussing the "observations of key problems, issues and concerns, regarding the Lahore Electric Supply Company (Lesco) in the meeting of the 4th steering committee on Lesco held on April 25, USAID consultants suggested that free electricity being provided to employees of Lesco should be renamed and should reflect its purpose. After detailed discussion with the consultants it was decided to rename it as \'utility allowance\'.

The consultants have also suggested that each power distribution company should have \'Power Dispatch Centre\', enabling monitoring of delivery points on real time basis. Operation Director of Lesco apprised the steering committee that it was being planned to implement Supervisory Control and Data Acquisition (Scada) system for power control centres which will be in co-ordination with National Power Control Centre (NPCC). The consultants emphasised on accuracy of meters that would play an important role in delivery of electricity.

The steering committee emphasised the implementation of a Scada system in Lesco; and to evaluate other options. USAID consultants also sought the information from Lesco for cost of service study. The information required includes monthly electricity purchases by discos from national dispatch centre, length of each transmission line (in km) and load carried by each transmission line over one year period; meters at customer level; quality and accuracy of metering devices; meter installation and locations, meter protection (how meters are sealed and protected against tampering); meter calibration and testing, types of metering connections.

The other queries are about Time of Use (TOU) meters and TOU accuracy and its utilisation for reducing cost; Customer Meter reading - accuracy of collected data; recording devices or methods; periods for metering, meter reader rotations, setting of routes, accuracy of meter reading data and recording; data complication; power dispatch centre/ control centre responsible for disco system control and for handling outages, disco demand forecast 2009-2013; production of bills, delivery of bills, billing time periods, billing system protection against human errors; payment periods, non-payment; fees and penalties, payment information flows, banks\' fees, etc, customer account reconciliation; customer service, handling and resolving complaints.

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