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The Power Division and ex-WAPDA DISCOs are currently embroiled in a dispute over the implementation of a substantial Rs73 billion project, known as the “Asset Performance Monitoring System” (APMS). This project is intended to enhance electricity supply, operational efficiency, and modernize the management of distribution companies (DISCOs). However, the two parties have conflicting views on the effectiveness and execution of the project.
In a recent directive, the Power Division instructed the DISCOs to submit the PC-1 of the APMS project for board approval by August 9. The plan involves installing the APMS on 100KVA general duty distribution transformers across ten DISCOs, aiming to address significant electricity losses. During FY22-23, the distribution system lost 19.169 Tera Watt-Hours (TWh) of electricity, which constitutes 16.45 percent of total electricity distributed. These losses contribute to the power sector’s circular debt and inflate electricity costs for consumers.
The APMS project proposes the installation of asset performance management systems on 87,096 transformers of 100KVA and 47,317 transformers of 200KVA across the DISCOs. The distribution of transformers includes MEPCO (23,465), LESCO (25,675), FESCO (15,703), IESCO (6,123), HESCO (6,622), SEPCO (4,815), PESCO (21,315), among others. The plan also includes installing breakers on 135,413 transformers, which will operate under GCM technology to control transformer operations. These breakers will disconnect power supply in case of theft or overloading.
The project is estimated to cost around Rs73 billion, including markup. The Power Division has suggested that DISCOs secure loans from international financial institutions such as the Asian Development Bank or the World Bank to finance the project.
However, DISCOs officials have expressed skepticism about the plan’s effectiveness. They argue that installing breakers on transformers with borrowed funds from international institutions may not be the most effective solution. Some officials claim that the APMS will ultimately be of little benefit and that the plan was potentially developed in collaboration with local manufacturers, leading to concerns over inflated costs. They also raised concerns about the financial burden on the national exchequer and the eventual passing of project costs and interest to consumers.
Despite these objections, DISCOs were reportedly pressured to approve the project’s working papers. The ongoing conflict highlights the challenges in implementing large-scale infrastructure projects within the power sector, where differing interests and financial concerns can impact project execution and efficacy.
