INSTITUTE OF BUSINESS MANAGEMENT
Topic : Faculty: Program: Course: Diagnosis of KESC Maryam Siyal BBA(H) Principles of management
Information gathered by group members:
• • • • • •
Hafiz Muhammad Owais Salman Bakht Temori Sunil Kumar Zunaira Ahmed Anum Fariha Ali
. • Best Practices Framework. • Facts and figures. and Monitoring by KESC. • Working environment. • Sources and links. • Hierarchy of KESC organization members. • Problems faced by KESC. and Compliance.CONTENTS
History of KESC • Who they are? • What they do? • KESC’s vision. • Turnaround strategy. • Strategic planning. • Increasing and improving KESC’s generation capacity.
a metropolis with a population of over 17 million and one of the most populous cities in the world. Both companies can provide power to each other through these links.
WHAT THEY DO
. Vindhar and Bela in the adjacent province of Baluchistan.
WHO THEY ARE
Karachi Electric Supply Company (KESC) generates and supplies electric power to Karachi. the company was nationalized in 1952 but was re-privatized on November 29. One is the Jamshoro – Bin Qasim link in East of Karachi and other is HUBCO-KESC link in West of Karachi. For Karachi city and adjoining areas of Sindh and Balochistan.KARACHI ELECTRIC SUPPLY COMPANY
HISTORY OF KESC
KESC is one of the oldest companies in Karachi and was established in the city even before the creation of Pakistan in 1947.1million consumers. Incorporated on September 13. KESC came under new management in September.
They currently provide electricity to over 2. not only in Karachi but also in the towns of Dhabeji and Gharo in the province of Sindh and Hub. under the Indian Companies Act of 1882. The electricity supply business in Pakistan is under two companies. 2005. For rest of the Pakistan it falls under Water and Power Development Authority (WAPDA). 1913. Uthal. 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. it is under Karachi Electric Supply Corporation (KESC). 2008. Both companies operate their own networks and they are also interconnected to each other at two points.
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Thought Leadership Knowledge Based Learning Values Social Responsibility
Our key goal is to provide uninterrupted. Our vision is based on the following four pillars.KESC’s VISSION
Our vision is to be a value-driven and service integrated company. reliable electric power at an affordable price to our consumers as it is our core priority. We also play a responsible role when it comes to giving back to our society. and has therefore. each of which is monitored by an independent centre. the city's electric network is divided into four different regions. Increasing employee morale and presenting a more positive image of KESC are all part of our ambitious five-year plan for the company. employees and stakeholders. We are devoted to developing positive relationships amongst our consumers. led to the initiation of professional partnership program.
. with innovative ideas.
Strategic plan with implementation mechanism was prepared for rehabilitation of out dated and dilapidated transmission and distribution network which has been under execution in a phased and prioritised manner. which we believe is developing to its fullest potential. where the core set of values is shared amongst everyone. Employee development is another top priority for us. To make distribution and customer service more efficient.
Ninety eight 11kV feeders have been commissioned and 323 PMTs have been installed & energised. have come up with a three-tier turnaround strategy: (i) Restructure and develop the organization to make the operation more customer. Augmentation and expansion of outdated and fragile distribution network has always been among the priority areas of the management in order to facilitate valued consumers of the Company by providing uninterrupted supply of electricity. diversify sources of power for KESC.
The new owners.
. which has improved network reliability and increased transmission & distribution capacity. facilitate timely operational decisions & economic dispatch of power and would minimise outages and technical losses. which will lead to lower energy losses and higher billing per units dispatched.focused while improving collections and administrative losses. (ii) Balance. in partnership with KESC management and Siemens. This will lead to better revenue protection and cash-flow generation. (iii) Increase and improve KESC’s generation capacity to increase the revenue base. while enhancing KESC’s management capabilities and increasing customer satisfaction. and enhance the Karachi area’s overall generation capacity to cater for the increasing demand. transmission and distribution known as SCADA is being executed as one of the prioritized projects. lower the blended cost of generation. The commissioning of this critically important project would significantly improve efficiency of power system control & monitoring.A number of critically important projects have been commissioned or are in the final stage of completion. Establishment of a computerized system for management of generation. modernize. and replace the T&D network to be able to cater for peak capacity demand in the future and reduce technical losses. Customers are provided with one-widow service with the inception of Integrated Business Centre and a transparent computerised new connections sanctioning procedure has been introduced.
employees will be required to take tests conducted by the Institution of Engineers. KESC is partnering with IEP to develop several certifiable professional-skill enhancement programs. one must constantly brush up one's skills. In this rapidly changing world. To encourage our current employees to do so. To ensure merit-based job selection.400 MW (Rental Inclusive) Fuel types: Gas. we have introduced an organizational development project.S 11562 Nos Dist Transformers 13992 Nos HT Underground Cable 4940 KM HT Overhead Mains 2445 KM LT Underground Cable 1186 KM LT Overhead Mains 10665 KM Dist Capacity 4328 MVA
. To be promoted to higherlevel positions in the company.Nearly 55% of the electricity is generated through our own system
TRANSMISSION Capacity: 59 grid stations & 123 power transformers Network of 220. A new lab has been established at the KESC Training Centre to train and test employees' technical skills. HFO External WAPDA & IPPs .About 45 % of the electricity is purchased from WAPDA & IPPs Internal KESC .
GENERATION Capacity: KESC Available Capacity: 1. and 66 KV circuits The purchased and own generated electricity is being transmitted through transmission network. and that we select highly qualified candidates. an Internal Job Posting process has been implemented.Working Environment
We assure our employees job security and long-term employment provided they fulfill their responsibilities. The current transmission losses are less than 3%
DISTRIBUTION Capacity: 11 KV Feeders 1107 Nos Substations 2571 Nos PMT. Pakistan (IEP) and participate in panel interviews. 132.
Aggreko Rental 50 MW) Around 17. 620 MW WAPDA/NDTC.350 MW (1350 MW Own capacity. 11% officers)
Total Capacity: Employees:
.000 square kilometers. with a licensed network area spanning 6. transmission. 379 MW IPPs. 89% staff. 2. KESC is a public limited company listed on all stock exchanges.000(52% permanent. and distribution.FACTS & FIGURES
KESC is an integrated power utility with exclusive franchise rights to serve Karachi and its surrounding areas. 48% contract. Fully integrated power utility involved in generation.
these values include integrity.Key Status Grid Stations
Transformers 220 KV/ 132 12 KV 132 KV/ 11 105 KV Total 117 Power Lines 12 220 KV Lines 56 x 132 KV 5 x 66 KV Total 223 km 617 km 149 km 989 km
Overview • Transmits electricity from generation to distribution at high voltage.
Power Lines 11 KV 0. Bulk customers get supply from 11 KV lines.4 KV circuit.4 KV 7.
Key Status Transformers Pole mounted Feeders 13.718 km
All other consumer has connections from the 0. Grid stations step-down electricity.
Only 11 customers on the transmission network.096 km 11. accountability and the drive for continuous improvement.
18. Living theses values means managing our environmental impact in ways that strike the right balance between society's economic and environmental needs
.414 1. We are a value driven company whose main emphasis is based on the following four pillars:
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Thought Leadership Knowledge Base Learning Values Social Responsibility
We have to pertain to our values.020
Overview • Distributes electricity to 2 million customers.814
Their team ensures performance quality and provides in-depth oversight on strategic issues.
KESC Board of Directors Chief Internal Auditor Executive Management Committee
Chief HR Officer
Chief Financial Officer
Chief Legal Adviser
IT Department Head Transmission
Chief Supply Chain Officer
PROBLEMS FACED BY KESC
The Karachi Electric Supply Company has been facing big deficit of cash flow on the part of its non-paying consumers.
Chief Operating Officer Generation Engineering Program Productivity Head
. 36 billion to KESC. and this in turn is resulting in shortfall of power supply to the Metropolis. They are neglected by the government. Kunda system is very rampant. Corrupt employees have a hand in providing kundas to some people. who owe Rs. They are facing the problem of theft of electricity. They have serious disagreements among themselves. • • • • • They are having short means of generations. The KWSB is in debt of over Rs. It causes major loss in KESC. 8 billion because of which a rotational load-shedding is being carried out on 12 dedicated feeders at its Water Pumping Stations for four hours during night time.
Externally. Internally. Those employees that are not corrupt are very sincere in their work showing up for work during severe load shedding days though they know that their building can be attacked by angry mob. There is a simple connection of kunda and there are also planned connections. and departments where best practices exist. who already have connections. bypass the electricity meters. This adds an unnecessary transmission cost in moving this power to north. Few years ago KESC was being run by the Army and even they couldn’t stop the power theft in spite of moving electricity meters of most of the city out on the streets. divisions. they can then be implemented across all other areas. Distribution Problems: Now let us come to KESC’s distribution woes. Geographic Location of KESC Power Plants: Most of the generation capacity of KESC is located in east of the city. benchmarking will be used as a tool to identify the extent of the deviation from best business practices. Media presents just the consumers problems and does not show problems faced by them Their biggest threats are the kunda system and the public. This will include internal and external benchmarking processes. and Compliance and Monitoring by KESC
KESC is in the process of benchmarking itself against international best practices. This was done to ensure the meters are not tempered with. Corrupt employees have a hand in providing kundas to some people. west and south of the city.
. The distribution network is not only below demand but there is a huge factor of power theft also. benchmarks will be used to identify business units. This theft happens in three ways: KESC clients. They see it as their right to electricity. Corrupt employees exist thus bribe systems are present.• •
The public does not consider theft of electricity as theft. As best practices are identified in one area. Industrial clients who are billed according to a sanctioned load use bigger grips to get more power
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Best Practices Framework.
1. Capacity Addition: Capacity addition of 780 MW through two new combined-cycle power generation plants is planned under this component. or systems to its own benefit. At present. Key areas for improvement are heat rate. Having identified best business practices. The partner may be an organization within the same service sector or industry.0 billion ($174 million). Rehabilitation of Existing Generation Facilities The rehabilitation program aims to increase power generation capacity from existing plants by 213 MW before the summer of 2007. KESC can implement these practices. auxiliary consumption. 2. based on merit and enabling open communication without regard to social or corporate hierarchy. The total amount allocated for rehabilitation for 2007 and 2008 is approximately PRs0.
Increasing and Improving KESC’s Generation Capacity
This component is divided into two components of rehabilitation of existing facilities and generation capacity addition.pk/en
.kesc. and load factor. KESC is in the process of implementing. procedures. The plants will have a dependable capacity of approximately 745 MW. The management is currently focused on trying to implement a highperformance culture. The first plant of 220 MW will be built on surplus land within the boundary of Korangi Thermal Power Station and will cost PRs11.This will be achieved by selecting a partner within the benchmarking network.
SOURCES AND LINKS
http://www. Management has devised broad cultural guidelines that each person and group (as well as KESC as a corporate entity) will aspire to live by in the discharge of their duties.com. or one from different industries or sectors.6 billion ($10 million).
http://docs.adb. org/Documents/RRPs/PAK/40943-PAKRRP.com/gview? a=v&q=cache:_Vdfkg0C0lsJ:www.
.google.pdf+KESC+mission+statement&hl =en&gl=pk&pid=bl&srcid=ADGEEShuJ kRiPhqszu718ZTeIl6KwewFfkj50TiPpxHANTNI 4nlTIltmkuu7z5_izEfSJlXLZvz33nR3RS VzIMTj-poaQkcthPApnkTiOZfdJGhoM2uWfKDudgU e_wFpt6QLdCvYZ2&sig=AFQjCNEbUCti hyWo-gM9-dyaTzA1bMf4hg.