Ninth Quarterly Progress Report: Power Distribution Program, October-December 2012

The program conducted audits and developed Action Plans to identify future interventions and demonstration projects. Components 2 and 3 were implemented in parallel, with Component 2 focusing on executing jointly selected interventions and projects identified in Component 2 Action Plans, while Component 3 involved developing interventions as described in IRG's recently approved Component 3 proposal. Component 2 achieved several highlights, including the establishment of Planning and Engineering Computer Centers at seven DISCOs, equipped with licensed ArcGIS and SynergEE software, printers, and a plotter. These centers will modernize and strengthen the P&E Departments of DISCOs, reducing energy losses, and increasing power availability to consumers. Additionally, the organization assessment and restructuring assignment in MEPCO was conducted by AASA Consulting, a professional HR firm, to identify job descriptions, key performance indicators, HR manual, and revised policies. The Power Sector Circular Debt Report was compiled by PDP in cooperation with AEAI, detailing the causes of circular debt over five years and providing recommendations for its elimination. Furthermore, the Cost of Service Model was used to determine the actual cost of service for supplying electricity to each customer category, helping IESCO in redesigning and aligning its tariffs to the actual cost of service, and facilitating NEPRA to rationalize tariffs, reducing the tariff differential subsidy, and the financial burden on the government. Component 3 proposal was approved this quarter, supporting the delivery of energy conservation and demand-side management interventions, continued policy and regulatory reform, expansion of Cost of Service studies to eight DISCOs, installation of a national load management improvement program, and continuation of a national power factor improvement program. The Load Management Improvement Project was initiated, aiming to reduce unscheduled load shedding through the installation of Automated Meter Reading (AMR) on 741 grid station incomers and feeder meters at DISCOs. The program also assisted the Ministry of Water and Power (MWP) and chairmen of power distribution companies (DISCOs) in supporting cooperation and communication among power sector policy makers, National Electric Power Regulatory Authority (NEPRA), and capacity building, issues of DISCO employees, and the flow shortage at DISCOs. The Power Sector Circular Debt Report was compiled by PDP in cooperation with AEAI, detailing the causes of circular debt over five years and providing recommendations for its elimination. The program's efforts aim to improve the overall commercial performance of government-owned power distribution companies (DISCOs) and the Ministry of Water and Power (MWP). The program's progress and accomplishments are a result of the implementation of Components 2 and 3, which focus on executing jointly selected interventions and projects, developing interventions, and providing support for energy conservation and demand-side management interventions. The program's key events and meetings included a meeting with NEPRA to identify potential areas of assistance and work on priority areas, a brainstorming workshop attended by DISCOs and NEPRA representatives to identify areas for improvement, and a meeting with the Ministry of Water and Power (MWP) and chairmen of power distribution companies (DISCOs) to support cooperation and communication among power sector policy makers. The program's problems and obstacles included security risks, which were addressed through the implementation of security protocols and the provision of security training to staff. The program's security risks were mitigated through the implementation of security protocols and the provision of security training to staff.