PDP No.

Title of Para & Details Present Status

642 NON-REMOVAL OF ELECTRICAL EQUIPMENT AND  In this very para 29 No. connection amounting to Rs. 43.47 million relate to Eastern
Eastern Circle
Linked with NON-RECOVERY OF ARREARS - RS.93,165.04 Circle LESCO. These connections were only Govt. connections. The Govt. departments
& MILLION made payments as per their available budget partially / fully excluding Late Payment
According to Para-3 of Authority’s circular dated April 15, Surcharges (LPS) which were reconciled time to time by the management of LESCO and
45 1998, “disconnections will be affected through removal of all concerned Govt. departments. The Govt. connections mentioned in this very para at
CSD LESCO
meters, transformers, span or any other equipment to ensure that time were fully paid. New Govt. connections appeared in ERO (CP-114) due to
AR Period that no possibility of loop hole is left for unauthorized use of accumulation of partial payment and accumulations of Late Payment Surcharges (LPS).
2019-20 energy during the period of disconnection. The equipment after This is the routine of the all-Govt. departments that they clear all their total dues in every
having been removed from site was required to be returned to June of the fiscal year and only late payment charges were left behind. As this ferret is
AR Para No. store”. beyond the control of field formation. The record has been produced to D.G Audit
2.1.1
In DISCOs, 411,177 consumers of all categories defaulted to (Power) vide No. mentioned below against each:
pay energy charges of Rs.93,165.04 million. The equipment
removal orders (EROs) were issued but not implemented. The Status record No of Total
Verified Balance
detail is as under: - production of Consumers Amount

Amount
PDP Govt
Pvt. (M) (M) (M)
.
Sr.
No.
Name of
Company
Proposed Draft Para No.
No. of
EROs
(Rs.in No. 642
million) is as follows: - 330 0 495.73 - -
45, 516, 642, 821,
1. LESCO 14,118 7,882.56
1069/2019-20 Note:
Non-adherence to Authority’s instructions resulted in non- Pvt. Recovery made on account of equipment removal orders; Government department
removal of electrical equipment and non-recovery of energy made payment as per their available budget excluding LPS which has been reconciled
charges amounting to Rs.93,165.04 million up to the financial time to time without LPS due to accumulation of LPS the Govt connections numbers
year 2018-19. appear in equipment removal order (CP-114)
The matter was taken up with the management during July to
December, 2019 and reported to the Ministry during September
to December, 2019. The management replied that in some cases
amount had been recovered while efforts were being to recover No of Total
Division Verified Balance
the arrears. The reply was not agreed to as non-implementation Consumers Amount
of EROs was not justified. Govt
Pvt. (M) (M) (M)
The DAC in its meetings held during December 26, 2019 to .
Mcleod Road
January 02, 2020 directed the management to provide the 29 0 43.47 - -
recovery record to Audit for verification within a week and
expedite the remaining recovery or execution of EROs. Further Remarks:
progress was not reported till finalization of the report. Record has been produced to DG Audit (Power) vide Diary No.2029 dated
Audit recommends that the management needs to implement 20.09.2021 (Copy Enclosed)
DAC’s decision besides fixing responsibility.
 PDP No. Title of Para & Details Present Status

1126
CSD LESCO LOSS OF REVENUE DUE TO ABNORMAL LINE LOSSES In this very para 72 No. of mixed feeders relate to Eastern Circle in which the losses
All Manager BEYOND NEPRA’S TARGETS - RS.9,606.24 MILLION appeared as beyond the permissible limit of NEPRA i.e 11.76% but actual picture is
(O) NEPRA Fixed targets of 11.76% against energy losses in LESCO that this is due to feeder coding and coupling effect. (Due to over loading of feeders,
for the Financial Year 2018-19 in respect of general feeders. randomly the feeder load shifted to nearby existing feeder which individually has
AR Period
2019-20 negative losses), these losses appeared and incorporating combined losses, the line
In Chief Executive Office, LESCO Lahore, the percentage of line losses appeared to be within permissible limit of NEPRA.
AR Para No. losses on 463 feeders were remained between beyond 18% i.e. over
12.5.1 and above one and half times the target of T&D losses set by the
NEPRA i.e. 11.76%. Hence, the losses on these 463 feeders were
IR Para No. abnormally on higher side entailing loss of 640.42 million units
35
worth Rs.9606.24 million to the company.

Non-adherence to NEPRA’s line loss target and due to operational

mismanagement, loss of revenue of Rs.9,606.24 million during the
Financial Year 2018-19 was sustained.
The matter was taken up with the management in November, 2019.
The management replied that the target of losses has never been
conveyed at the level of distribution feeders as the technical losses
of a feeder vary from one feeder to another depending upon the
different factors like length of feeder and type of conductor etc.
Reply was not tenable as abnormally higher losses on the feeders
warrant attention of the management for taking appropriate action
to reduce the losses.

Audit recommends that the management needs to probe into the

matter for taking appropriate actions for reduction of losses on the
feeders.
 PDP No. Title of Para & Details Present Status

647 RECOVERABLE AMOUNT FROM INDEPENDENT There are 1 number figure feeder in this vary Para is related to McLeod Road Division. The reply
Eastern Circle CONSUMERS ON ACCOUNT OF ENERGY LOSSES is that appearance of abnormal losses against independent feeder is due to reading difference or
& BEYOND PERMISSIBLE LIMIT - RS.37.53 MILLION bill correction, debit or credit in the respective month as well as due to wrong feeder coding.
1125 According to Table-5 of Chapter-5 of Distribution However, detailed reply is as under:
LESCO Rehabilitation Guidelines (September 2003), “the maximum
permissible limit for annual energy losses for H.T Circuit 1. Regional Income Tax (035721)
AR Period (Rural/urban) is 3%”. On this feeder 4 No. connection of income tax department are running while
2019-20 only two number connections printed on this feeder and other two-number
In Eastern Operation Circle LESCO, annual energy losses of connections were Booked on Bank Square Feeder (Mixed Feeder) i.e, received
AR Para No.
four (04) independent feeders were ranged from 4.95% to units booked on Regional Income Tax Feeder and sold units on Bank Square
12.5.6
25.47% instead of the permissible limit of 3% which entailed Feeder.
IR Para No. loss of 2.501 million units amounting to Rs.37.53 million. The Compiling the received / Sold units effect of both feeders resulted in progressive
14 & 36 losses above the permissible limit were either due to illegal loss -1.0% which also in permissible limit.
extension of load or the conductor was incapacitated to
withstand running load, however, no action was taken for Feeder Feeder Recovered
Mcleod Road Name Code Amount
recovery from consumers.
Income Tax 035721 -
Non-adherence to distribution rehabilitation guidelines resulted Remarks:
in non-recovery of energy losses Record has been submitted to D.G Audit (power) vide D/O No.1543
of Rs.37.53 million from independent consumers beyond dated:23.04.2021 and verification is awaited from D.G Audit (Power).
permissible limit during the financial year 2018-19.
The matter was taken up with the management in October, 2019.
The management stated that detailed reply would be submitted after
consulting the record.
Audit recommends that the matter needs to be investigated for
fixing responsibility besides expediting recovery as per SOP.
PDP No. Title of Para & Details Present Status

1141 UNDUE GENERATION OF REVENUE DUE TO In this very para 03 Nos. feeders relates to McLeod Road Division under Eastern Circle. All
CSD LESCO
OVERBILLING ON INDEPENDENT FEEDER these feeders are independent feeders individually allocated to respective consumers. These
& CONSUMERS RS.563.990 (M) are over billing case but difference in reading days as the receipt on these feeders booked for
649 As per Para-1.3 of Commercial Procedure, Revenue Officer 30-days whereas consumer readers date was 5 th of each month. These reading dates of receipt
LESCO/All and Assistant Manager are responsible for: / sold units caused negative losses. The latest status of Division Wise Statement of General
Manager (O) 1. Implementing in conjunction with the Executive Feeders Having overbilling revised under Eastern Circle LESCO which details are given
Engineer, the commercial policy laid down from time below:
AR Period to time by the Authority through the company.
2019-20 2. Efficient application of billing and collection Feeder
Units
procedure. Sr Sub Name &
IR Para No. Cons. Over Amount Remarks
No. Division Feeder
31 & 12 Billed
In Chief Executive Office LESCO Lahore, on 213 Code
independent feeders, units billed were more than the units Davis 20619
1. 1 43120 646800
received. This indicated that over billing to the extent of Road Dunya TV
37.599 million units costing Rs.563.990 million was made Davis
20618
to the consumers which was not justified. 2. Shaheen 1 47311 709665
Road
Complex
Non-implementing of commercial procedure resulted in 58313
Davis
undue generation of revenue Rs.563.990 milliom due to 3. Wapda 5 48985 734775
Road
House
overbilling during the financial year 2018-19.
2,091,24
Mcleod Road Division Total
The matter was taken up with the management in 0
November, 2019. The management replied that variation
between the units received and units billed on independent
feeders was due to difference in reading dates. The reply
was not tenable as progressive figures of losses were taken
and difference of four or five days do not make substantial
variance.

Audit recommends that management needs to investigate the

matter and fix responsibility for charging of units more that
the units received on independent feeders.
PDP No. Title of Para & Details Present Status

649 UNDUE GENERATION OF REVENUE THROUGH Total Units

All Manager Division No of No of
OVER BILLING RS.322.50 MILLION Excess
(OP) Name Feeders Cons.
According to G.M (C&M) Power memo dated December charged
AR Period 01,2007, Minutes of CEO’s DISCO’s Conference-26 November. Per Unit cost @ Rs.15/-
2007, MD PEPCO showed his concern over the issues of
2019-20
excessive billing, parking of units and pilferage of electricity.
Eastern Shalamar 17 3085 3,973,657
IR Para No. Line losses due to theft of electricity with the collusion of staff Circle Mcleod Road 10 12483 8,467,484
12 are covered by bogus billing. Staff involved in theft of
electricity must be imposed punishment to create deterrence. Baghbanpura 16 18681 8,790,962

In Eastern Circle LESCO, the percentage of energy losses of Mughalpura 1 3 267911

forty three (43) feeders were in negative figures during the Total Circle 43 34,252 21,500,014
financial year 2018-19. The negative losses revealed that 21,500
million units were billed in excess of units received which was
an indication of overbilling amounting to Rs.322.50 million to
various consumers.

Non-adherence to MD PEPCO instructions resulted in undue

generation of revenue of Rs.322.50 million due to overbilling to
consumers during the financial year 2018-19.

The matter was taken up with the management in October, 2019.

The management replied that it is pertinent to say here that
actual billing in whole circle is being done no Bogus /Over
billing is made. The reply was not satisfactory.

Audit recommends that the matter needs to be investigated for

fixing responsibility upon the persons at fault.
PDP No. Title of Para & Details Present Status
The latest status of Sub Division Wise Capacity Wise Progressive Statement of
26 LOSS DUE TO DAMAGE OF DISTRIBUTION Damaged/Burnt Transformers from 07/2018 to 12/2018 were revised McLeod Road Division
LESCO/All TRANSFORMERS – RS.515.047 MILLION under Eastern Circle LESCO which details are given below:
Manager (O)
According to Section-III (1) of WAPDA Guidelines for 15 25 50 100 200 300 400 630
Total
Eastern KVA KVA KVA KVA KVA KVA KVA KVA
AR Period Enforcing Responsibility for Losses due to Fraud, Theft or
Circle
2019-20 Negligence of Individuals, 1982 (amended up to June 01, 2001), 0 0 2 28 153 0 2 2 187
“all losses whether of public money or of stores, shall be
IR Para No. subjected to preliminary investigation by the officer in whose 15 25 50 100 200 300 400 630
05  SUB Division Total
charge they were, to fix the cause of the loss and the amount KVA KVA KVA KVA KVA KVA KVA KVA
DAC Dated: involved”. Anarkali 0 0 0 0 2 0 2 0 4
02.01.2020 In LESCO, Lahore, 1,299 distribution transformers of different Gawal Mandi 0 0 0 0 9 0 0 0 9
capacities valuing Rs.515.047 million were damaged / burnt. Royal Park 0 0 0 0 6 0 0 0 6
Neither the reasons/M&T report were found nor the enquiry of Davis Road 0 0 0 1 7 0 0 0 8
the damages were made/finalized in order to fixed the
Dehli Gate 0 0 0 1 5 0 0 0 6
responsibility of these damages. This state of affairs put the
Mcleod Road
authority in to a loss to the stated extent. 0 0 0 2 29 0 2 0 33
Division Total
Non-adherence to Authority’s instructions resulted in loss of Remarks:
Rs.515.047 million due to damage of distribution
transformers during the period July, 2018 to December, 2018.
The matter was taken up with the management in June, 2019.
The management replied that SOP is followed for release of
transformers against damaged. Damaged reports are prepared
under supervision of concerned Dy. Director Technical to fix the
responsibility by taking into account all their reasons of damage
transformers. No transformer against damaged transformer is
released without investigating the reason of damage. Steps like
explanation and LOE to SDOs/LSs are taken to reduce the
damage. Aging factor, rain/ storm, birds and tree falling are the
main reasons for damaged which are beyond control.
Audit recommends that it is the fault due to lack of concerned
SDOs/LS, because they should need to check the load as per
requirement of the consumer. Due to negligence of staff LESCO
was borne loss of Rs.515.047 million. The management is
required to investigate the loss and fix the responsibility on the
person beside make good the loss from the defaulter under
intimation to audit.