final report wapda

The Authority

WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the development of schemes in Water and Power Sectors, which were previously being dealt with, by the respective Electricity and Irrigation Department of the Provinces.

Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and hydropower development whereas PEPCO is vested with the responsibility of thermal power generation, transmission, distribution and billing. There is an independent Chairman and MD (PEPCO) www.pepco.gov.pk replacing Chairman WAPDA and Member (Power) who were previously holding the additional charges of these posts.

WAPDA is now fully responsible for the development of Hydel Power and Water Sector Projects.

PEPCO has been fully empowered and is responsible for the management of all the affairs of corporatized nine Distribution Companies (DISCOs), four Generation Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). These companies are working under independent Board of Directors (Chairman and some Directors are from Private Sectors).

The Companies are administratively autonomous and leading to financial autonomy by restructuring their balance sheets by bringing their equity position to at least 20 percent, required to meet the prudential regulations and to facilitate financing from commercial sector (approved by ECC).

The Loan Liability Transfer Agreements (LLTA) has been signed with Corporate Entities and execution of loan transfer is complete.

All Entities have the physical possessions of all their operational assets.

On 24th Feb. 2007 Ministry of Water & Power notified NEPRAapproved Tariff for all Distribution Companies replacing unified WAPDA Tariff.

http://www.pepco.gov.pk/

Legal Agreements such as Business Transfer Agreements, Operation Development Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel Supply Agreement etc. were executed between WAPDA and Corporate Entities to facilitate commercial operations.

Regulatory instruments like Grid Code, Distribution Codes, Performance Standard for Distribution Companies and Transmission Companies were drafted and got approved from (www.nepra.org.pk) in 2007.

All major lenders gave their consent for transfer of their loan from WAPDA to Corporate Entities, thus 326 loan assumption agreements were signed amongst respective Companies, WAPDA and EAD (Economic Affairs Division) GOP.

CPPA is established under the coverage of NTDC for payments from DISCOs to IPPs, GENCOs and NTDC. Ultimately, it will function independently under Federal Govt. and all forthcoming IPPs will be under CPPA.

The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following fields:

a. Generation, Transmission and Distribution of Power. b. Irrigation, Water Supply and Drainage. c. Prevention of Water logging and Reclamation of Waterlogged and Saline

Lands. d. Flood Management. e. Inland Navigation.

The Authority comprises of a Chairman and three (3) Members working through a Secretary.

WAPDA is one of the largest employers of human resources in Pakistan. Over the years WAPDA has built-up a reservoir of Technical know-how and expertise which has made it a modern and progressive organization.

http://nepra.org.pk/

Organization

WAPDA Authority Mr. Tariq HamidChairman

Mr. Ch Abdul QadeerMember (Finance) Mr. Fazal A. KhanMember (Power)

Mr. M. Mushtaq Ch.Member (Water)

Board of Directors FESCO

Mr. Muhammad Asghar QureshiChairman

Mr. A. Mannan Mr. Rashid Ali Mr. Ahmad Saeed Akthar Director Director CEO/ Director

Mr. S. H. Zaidi Mr. A. Rehman Mr. Salman Iqbal

Director Director Director

Finance Director

Mr. Izhar-ul-Haq

Company Secretary

Mr. Muzaffar Abbas

Director's Audit Committee(Constituted in compliance with Code of corporate Governance)

Mr. Rashid Ali ChairmanMr. Abdul mannan MemberMr. Shan H. Zaidi MemberMr. Muzaffar Abbas Secretary

Bankers

National Bank of Pakistan Habib Bank Limited United Bank Limited Muslim Commercial Bank Limited Allied Bank Limited

Auditors

Ford Rhodes Sidat Hyder & Company

Registered Office

325-Wapda House, Shahrah-e-Quaid-e-Azam, Lahore.

Table of contents

Sr.# Description page#

1. Introduction2. Vision & Mission

3. Organizational Structure

4. Goals and Targets

5. Importance

6. Activities

7. Consumers

8. Departments

9. Functions of Departments

10. Tariffs and tariff categories

11. Pattern of Shareholding

12. Feel of Customers

13. Findings

14. Recommendations

Introduction

FESCO distributes and supplies electricity to about 2.44 million customers within its service territory with a population of over 15.5 million under a Distribution License by National Electric Power Regulatory Authority (NEPRA) pursuant to the regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act.). Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali, khushab, Jhang, Bhakker, T.T.Singh districts.

FESCO is one of the best electricity distribution companies in Pakistan in terms of operational performance, as it has low degree of distribution losses and a high rate of bill collection. Its main service area is Faisalabad, known as Manchester of Pakistan for its extensive textile industries.

FESCO (Faisalabad Electric Supply Company Ltd.) was incorporated as a non-listed public limited company, under companies ordinance 1984 on March 21, 1998. Certificate of commencement of business was issued on March 26, 1998. As a result of Wapda corporatisation and commercialization process, its former Electricity Area Boards were transformed into companies, and FESCO took over the Business, Assets and Liabilities of Wapda. By and by, efforts were made to inculcate the spirit of commercialization due to which required structural and legal changes were made. Administrative and functional autonomy was vested in the companies but fatherly role of Wapda remained associated with the companies. All policy guideline and financial support used to be coming from Wapda.

FESCO service territory covers civil Districts viz Faisalabad, Jhang, Toba Tek Singh, Bhakkar, Mianwali, Khushab and Sargodha. FESCO jurisdiction covers approximately 47,000 Sq. KM area of these districts. To serve the customer in its area of responsibility, FESCO organization has been divided into various categories like Operation, Construction and GSO whereas, to further the services, Operation has been divided into technical and commercial setups. Construction wing has two further bifurcations like construction of projects of 11KV and below network and 132KV and 66KV network.

FESCO has 4 Operation Circles, 19 Operation Divisions, 107 Operation Sub Divisions, and 01 Grid System Operation (GSO) Circle, 04 S.S.T Divisions and 01 P&I Division, 30 SST Sub Divisions and 4 No P&I Sub Divisions.

Circle Operations are managed by Managers, Divisional Operations are managed by Deputy Managers and Sub Division Operations are managed by Assistant Managers. For development of system, FESCO has two Construction Directorates. One Construction Directorate having five Construction Divisions are managed by the Manager (Project Construction) and is responsible for development of 11KV and below network besides carrying on village electrification departments. The other Construction Directorate is managed by the Manager (Project Construction) and is responsible for development of 132KV and 66KV network.

Faisalabad Circles 1st and 2nd manage the supply and customers of District Faisalabad. 1st Circle jurisdiction confines to eastern part of the City and extends to Jaranwala City, Khurrianwala and Chak Jhumra. Second Circle Faisalabad jurisdiction spreads over to western part of the city and extends to Tandlianwala and Sammundri Tehsils as well.Both the Circles have there Circle headquarters at Faisalabad. Jhang Circle has Circle headquarter at Jhang City and manages the supply and customers of Jhang, Toba Tek Singh and Bhakkar Districts. Geographically Jhang Circle is the largest among all Circles of FESCO. Sargodha Circle jurisdiction confines to the whole of Sargodha, Khushab, and Mianwali Districts and some area of Mandi Bahaodin District. To efficiently and effectively serve the customers, FESCO has endured various administrative arrangements to place Deputy Managers at all district headquarters.

Manager (Project Construction) executes the development projects of HT, LT, Deposit Works and Village Electrification. The Construction headquarter is placed at Faisalabad and it has four Construction Divisions viz Faisalabad, Sargodha, Jhang and Bhakkar.

Manager (P&D) is responsible to carry out technical planning of the system which includes load flow studies, development oh HT/LT proposal, sanction of big industrial and bulk supply connection. His main role is to keep a constant watch on the system to find out ways and to generate options of elimination of system

stresses. For improvement of Grid Systems, he plans for constructions of new Grid Stations augmentation and extension of existing grid stations. Indeed, his directorate generates work for both construction directorates.

Last year trend of increasing consumption of domestic sector remained continue during the year and even surpassed all categories. Furthermore, this increase is obviously the result of excessive village electrification in these districts which shows the positive initiative of the Government of Pakistan to bring all under developed districts at par with the developed areas of Pakistan. These initiatives, if remained continue consistently, will surely result into even development of all the downtrodden areas of Pakistan.

Vision

“ To provide reliable, affordable and safe electricity to make Industrial and Agricultural sectors competitive for world market, thereby alleviating poverty in the area of responsibility.”

Mission

“To transform and develop the company into a viable entity.”

Organizational Structure

ORGANISATIONAL STRUCTURE OFFESCO HEADQUARTERS

BOARD OF DIRETORS

Chief Executive Officer

Company Secretary

Mgr Internal Audit/Chief Internal Auditor

(Chief I/A)

Manager MIS(Director

Computer)

CE/Sr. Mgr. (P&E)

(Dir P & E)

Mgr Mtrl.Management

(Dir I/C)

ManagerProj. Const.

(PD Const)

Technical Director

Manager (Admn)

(Dir Admn)

Manager HRM

Manager Legal &

Labour Affairs

HR & Admn

Director

ManagerCommercial

(director

comm)

Manager Mktg(Tariff,

Contract Mgt.)

Manager CS,Surv. & Inv.

(Dir Surv.)

Cust. Svcs.

Director

CE/Sr. Mgr O&M(Dist)

(Dir CM & O)

CE/Sr. Mgr. O&M(T&G)

132KV

Mgr M&T(Regional Manager

M&T)

Operations

Director

ManagerCorp. Plan &

Ctrl.

Manager Corp.

Accounting

(Dir A/C)

Finance

Director

Goals and Targets

Following are the main goals and targets of the company,

1. To Reduce Distribution Losses.

2. To Generate Revenue.

3. To Install New Connections.

4. To Provide Electrify New Villages.

5. To Replace Single Phase/Three Phase Meters.

6. To Improve Quality and Reliability of Supply;

a. New Grid Stations to be constructed.

b. Grid Stations to be extended.

c. Conversion of 66KV Grid Stations to 132KV Grid

Stations.

d. New Transmission Lines to be constructed.

e. Power Transformers Capacity to be enhanced.

f. 132KV Capacitors to be added on Grid Stations.

g. 11KV Capacitors to be added on Grid Stations.

h. Transformers to be repaired in TRW.

Importance

FESCO is responsible to provide electricity to the citizens of its territory. FESCO was incorporated as a non-listed public limited company, under companies ordinance 1984 on March 21, 1998.Certificate of commencement of business was issued on March 26, 1998.

The use of electricity is very beneficial. In last 15 years the use of electricity benefits at short level. But in this new age the electricity facilitates the customers more and more. Electricity becomes the part and parcel of human’s life. It serves their customers as important organ. As we can see that the developed countries stress for the provisions of uninterrupted supply of electricity.

To provide reliable, affordable and safe electricity to make Industrial and Agriculture sectors competitive for world market is the vision of FESCO that simply defines the importance of electricity.

The main users of electricity are;

1. Domestic.

2. Commercial.

3. Industrial.

4. Agriculture.

We can see the impacts of electricity in every activities of human or users of electricity easily. Now days the world becomes the electronic world. Every thing is electronic now days, ether it’s a small thing or not, and whether its use is minor or large. So all the consumers have very much importance of electricity. Such as,

At domestic level the electricity facilitate the consumers very much and makes the life of the consumers very easy. All the electronic things such as AC, Refrigerator, Fans, Tube lights, Washing Machines and many other Kitchen items that use in daily life makes the life of the domestic users very easy. All this thing work on electricity so the consumers can perform there work easily and in short time with the help of all these electronic things. Especially house hold wives and other working ladies can save their precious time and can utilize that time in any other activity. We can say that the electricity provide relaxation and free of tension environment at home. We can judge the importance of electricity for domestic consumers from the present condition, now a days the life of the domestic consumers is very much disturbed because of the load shedding. Due to this load shedding the consumers face many problems. The present condition of electric supply effect the domestic consumer's life very hardly.

At commercial level electricity has also very much importance. The traders need electricity to perform the commercial activities. If there's no electricity than its not possible for traders to carry on there business. Because the traders also use the electronic things in there business. We can judge the importance of electricity for commercial users from the present condition of electricity supply. The traders have to use the generators during the load shedding period, that increase there cost and expenditures that directly effects the customers and in result business failure.

At industrial level electricity has great importance. Industrial machinery totally based upon electricity. To groom of any industry there's very much need of continuous electricity supply. When any industry groom it can compete at world level and this thing leaves the positive impact on the economy of the country. Because when industry's grooming process start ultimately it generates the employment in country and its increase in export, and this thing generate more and more revenue, so all these things are very much important for the progress of the country. We can judge the importance of electricity for industrial sector from the present condition, because these days the industry is very much suffering from the shortage of electricity. Industry is not getting the continuous supply of electricity. And this thing effecting industrial sector badly. Because of load shedding the industrial sector is totally going in loss. Because of that the mostly industries are closed, and that create un-employment. And because of electricity shortage our industry is not working properly, so our industry cannot compete at international level, so this thing effecting our economy very badly.

At agricultural level electricity has also very much importance. Agricultural sector is the backbone of the economy of Pakistan. The performance of other sectors is totally depend upon the performance of agricultural sector, especially industrial sector. Because the agricultural sector is the source to provide the raw material to the industry. For the growth of agriculture sector the most important need is water, and for attaining the appropriate level of water for agriculture, the consumers use the tube well, to run the tube wells the consumers need electricity. And if there is shortage of electricity or load shedding than the consumers could not get the required ratio of water at the right time. So it will not favorable for agricultural sector, and leave bad impact on agricultural sector, that also leave bad impacts on the industrial sector as well. And in result very bad impact on the economy of the country.

Electricity becomes the flash of blood in life. We cannot perform any activity without electricity. Tele communication system, electronic media, print media and research department totally depends upon the electricity, because all work deal through the computerized electronic machinery and devices. Mobile that becomes very important now a days, charge with the help of the electricity. If no charging than we cannot use it, if we don’t use it than our communication circle breaks-up and if communication circle breaks-up than we cut off from the society. Because of the progress in electronic media the world is becoming the global village day by day.

Business sector has also very much importance of electricity. The use of electronic devices to complete the work in short time and efficiently. Almost in all the large organizations the official work is done with the help of the computers. Now a days not only the large scale businesses but also the small scale businesses are using the computerized systems, to make their work easy and reliable.

So we can say that the electricity has a lot of importance in our daily life, and FESCO is providing us electricity. In short we can say that FESCO has a great importance in our life.

Activities

The G.S.C Directorate of FESCO has increased the capacity of Chitiana grid from 66kv to 132kv, upon the directions/instructions of CEO of FESCO Ahmed Saeed Akther.At the said grid there was already a power transformer of 10/13 AMV.One more power transformer of 10/13 AMV was installed there. According to the manager G.S.C. Sheikh Muhammad Ashraf one more power transformer of 20/26 AMV will be installed here in future. This project was started by FESCO on its man power, on the demand of public for electricity need. The cost of this project was 50 million rupees, it should be made clear here that this grid is the second grid which is started during one month. Before that newly built 132kv grid at Thikriwala was started. Now Chitiana grid has also been started, by increasing its capacity to 132kv the related consumers would be saved from voltage problems. Now new connections will be given shortly, CEO Ahmed Saeed Akther congratulated the team of engineers and workers at the site.

The G.S.C Directorate of FESCO has installed and started the third power transformer of the capacity of 10/13 AMV at the 123kv grid station at khurian-wala,upon the directions/instructions of CEO of FESCO Ahmed Saeed Akther.In it, complete Bay and 11kv panel board are also included. While one new power transformer of the capacity of 20/26 AMV is installed at 132kv grid station Chiniot Industrial. Manager G.S.C. Shaikh Muhammad Ashraf told that, the voltage would be more better at the different feeders of these grids after the installation of the said two power transformers. Consumers will get better services and un-interrupted power. The projects were completed bb FESCO by its own resources and skilled man power.

FESCO’ s CEO Ahmed Saeed Akther said, the division of feeders and their transfer from congested areas be started in good season ant the schedule should be made as such that consumers be disturbed minerly.He was addressing a meeting of second circle Executives yesterday, in which Deputy Managers and Assistant Managers from all over the circle participated and briefed Chief Executive of their relative divisions and Sub Divisions. Chief Executive under the increasing number of consumers of Nazim-Abad division’s Samana-Abad, Factory area and Nazim-Abad Sub Divisions and for giving them better arrangements, ordered to make a new Sub-Division. He told field staff to speed up work over L-T and H-T proposals. Deputy Manager Nazim-Abad division Najeeb Ahmed Khan told in his briefing that wires are going over congested areas in Gull-Fishan and Bakar-Mandi feeders, they will be shifted and Liaquat-Abad feeder will be divided. Deputy Manager Operation Ghulam Muhammad-Abad told, due to over increased number of consumers in Faiz-Abad and Gullberg Sub-Divisions, a new Sub-Division has been suggested, work over which is in progress. Chief Executive told operation staff that during work over working lines, precautionary measures be implicated. While Deputy Manager and Assistant Manager for the safety of line staff make it sure that safety rules are being observed so that there should be no chance for deadly and other incidents. Manager Operation second circle Muhammad Shafiq Maan told Chief Executive that second circle has decreased line losses and increased recovery by its best working in whole FESCO region. Over which Chief Executive praised circle’s working and direct operation staff to keep it up.

An Agreement for the purchase of 7 Mega Watt of electricity between FESCO and Shakar-Gang Sugar Mills was done in WAPDA house yesterday. The agreement was signed by CEO FESCO Ahmed Saeed Akther and CEO of Shakar-Gang Sugar Mills Ahsan Saleem.At the occasion Secretary Cabinet Water and Electricity Ismail Qureshi, MD (PEPCO) Munawer Baseer Ahmed and other executives were present.MD (PEPCO) said in his address PEPCO to meet the demand and for the progress of power, sugar mills and private power producers is purchasing electricity. He told Shakar-Gang Mills plant is the only one of its nature in Southern Asia which by making Bio-gas from the wastage of sugar cane is producing electricity and it is totally on CDM mechanism. It will give FESCO electricity for Rs. 5.14 per Unit excluding G.S.T.This agreement is a step by PEPCO for the use of local and easily available waste.PEPCO in future will also encourage this technology.FESCO is already getting 43MW electricity from textile sector. Secretary Water and Electricity division Ismail Qureshi in his address said by the said agreement not only locally available electricity will be made use of and also the green field projects will be included in the national process of electricity. He hoped in future in Pakistan in the physibility study of sugar mills the option of producing

electricity will be considered. He also said that after this agreement other institutions attached with sugar mills will also come forward for making agreement like this with PEPCO.For making the best use of electricity produced by sugar industry he promised every possible cooperation under Government of Pakistan’s Policy. After this the Chairmen of Shakar-Gang Sugar Mills Asghar Qureshi told the details of project.

Consumers

Consumers of the company are,

1. Domestic consumer.

2. Commercial consumer.

3. Industrial consumer.

4. Agricultural consumer.

In the distribution companies the customers categorized on voltage level and tariff bases. Voltage level Division comes into existence on load requirement of the costumers and the use of electricity comes in tariff bases. This is a common thing all over the world. The objective of these Divisions is to give proper attention to each category the Agricultural and Domestic Customers have been divided only on tariff bases. But Industrial customer have been specifically categorized into small, medium & big industries. the Commercial and Bulk supply customers have been categorized both by tariff and load

1. Domestic Consumers

The objective of any Government is to facilitate its masses. The recourses of any Country used to higher the Living Standard of the Nation. Electricity is the major recourse of any Country and the providence of this recourse to General Public is the

responsibility of Government. FESCO is helping the Govt. in order to fulfill this responsibility in its territory. In year 2007 FESCO has provide electricity to 2,114,552 domestic customers. Domestic Customers are the main source of earning revenue for FESCO. In Faisalabad district use of electricity by Domestic Customers is about 47% and 53% of remaining is consumed by other six district. Domestic use of electricity in FESCO region is increasing. It indicates the improvement in quality of life of the people.

If providence of electricity is not proper then it will create Social and Economical crises. These crises may bring anarchy, which is not in the favor of country.

2. Commercial Consumers

Commercial activities are most important fot the prosperity of any country. The activities like trading, construction, private institutes and business related activities are categorized as commercial activities. It includes working class of any country. Electricity is necessary for these commercial activities, without electricity there is no growth in commercil sector. So we can say that commercial consumers are also important and the source of revenue for FESCO.

According to given data of 2007, FESCO is providing power supply to 2,703,39 consumers in commercial sector. The increase in commercial use of electricity is 12% in Faisalabad, 13% in Jhang, 15% in T.T.Singh, 13% in Bhakkar, 13% in Sargodha, 15% in Khushab and 19% in Mianwali districts. Faisalabad district is consuming 55% of the total commercial energy. If commercial consumers are not properly entertained, this will bring a lot of crisis for the working class of the Nation.

3. Industrial Consumers

Industrial growth is important for the development of developing country like Pakistan. Faisalabad is called the Manchester of Pakistan.Faisalabad district is hub of industrial activities. FESCO categorized Industrial Consumers in Small, Medium and Big Industrial Units. Power supply is essential for the growth of industrial sector. It is the main source to run the industry. Industrial sector is the second major source of revenue for FESCO. FESCO is providing 3253 Million Units to 35063 Industrial Consumers. Faisalabad district is consuming 73% of total Industrial energy, other 6 districts are consuming only 27%.

Industrial Growth tends to increase in foreign reserves of the country. The industrial sector is providing is lot of employment opportunities, this will also helps in economical and social growth of the country.

4. Agricultural Consumers

Pakistan is an agricultural state. Agricultural sector is the back bone of the economy of Pakistan. Almost 70% of the total population is directly or indirectly depends on agricultural. Performance of other sectors is affiliated with this sector. Industrial sector is fully dependent on agriculture. The Government is paying attention to promote this sector. Food and Nutrition requirements are also fulfilled by this sector.FESCO is strongly committed to provide maximum relief to this sector. FESCO brought all the agricultural consumers on TOD tariff and also provide special 75 paisa / KWH relief. FESCO connects 27365 consumers with power supply. This will helps to meet the irrigational needs of the area. Jhang district is the largest consumer of agricultural electricity. Development of the country is affiliated with the growth of this sector.

All the above mentioned consumers are the assets of the company.

Departments

Finance HR & Admin.

Planning

Operation

Information Technology

Customer Services

Stock Inventory System (SIS)

New Connection Monitoring System

Material Management (MM)

Management Information System (MIS)

Grid Station Operation (GSO)

Construction

Functions of DepartmentsI spent my 6 weeks internship tenure in Finance department of FESCO. So the important functions and features of this department are given below.

For the better working of this dapartment, the administration of this department further devides this department into 6 sections. These 6 sections are enlisted below,

1. Consolidation 2. Banking 3. Establishment

4. System Implementation and Post Audit 5. Assets and Pension 6. Budget

So the imporatnt functions and features of these sections are given below.

1. Consolidation

The major functions and features of this section are,

a. Maintenance of General Ledger Following points should be kept in mind;

Posting of general ledger by divisional accounts officer. No cutting/over writting. Must have an index. Should contain figures of budget proper reference. Written in ink. Balancing

b. Maintenance os Subsidiary Ledger Subsidery ledgers should be prepared in respect of all Receivable and Payable accounts.

i) Receivable

Particulars A/c Code

House bulding advance.......................................................070101 Car advance........................................................................070102 Motorcycle advance.............................................................070103 Purchase of plot...................................................................070104 Advance against TA/DA.....................................................1040102 Other advance....................................................................1040103 Recivables-WAPDA welfare fund.........................................150116

ii) Payable

Particulars A/c Code

Trade creditor payable.........................................................310100 Professional/Income tax payables.......................................310400 Withholding tax payable.......................................................310500 Accrued liabilities................................................................312200 Payable to contractors.........................................................312300 Pension payable..................................................................312406

c. Booking of Expenditures

i) Capital Expenditures

Which give benefits for more than one year. Improves the performance of assets. Enhance the earning capacity of the assets. Purchase of land. Construction of building. Replacment of meter. New connections ( General, Indutrial, Agri., Others ) Purchase of equipment / furniture / vehicle and other equipments.

ii) Revenue Expenditures

Benefit to the organization is less than 1 year. Day to day expenses. Do not increase the earning capacity of the assets. . Pay and allowences, benifits. . Repair and maintenance. . Rent, rate and taxes. . Professional fee. . Travelling expenses. . Provision for Bad debts. . Power, light and water.

d. Pay and Allowances

e. Booking of other Income i) Sources of Other Income a) Pay roll (i) Water charges (ii) Misc. Income

b) Collection cash book (i) School bus fee (ii) Tender fee (iii) Court fee (iv) Publicity fee

c) Credit Advices (i) Sale of scrap (ii) Non operating Income

d) Store statement (i) Material return note (ii) Sales of scrap

f. GST on Electricity Bills

Closing balance of GST on LPS as on 30-06-2007 added in opening balance of GST as on 01-07-2007.

A/c code 105404-GST on LPS and 311804-GST on LPS not yet realized are closed.

Detail of GST on LPS realized should be provided in their monthly accounts. g. Booking for T.V. Fees

Payable of T.V fees must be created under A/c code-310303 on full realized amount no. commission to be accounted for at realization.

Commission of T.V fees will be charged after receipt of debit advice issued by finance directorate office.

h. Debit and Credit Advices

Debit advices must be issued to all concerned offices well in time. Provide complete detail of issue / receipt of advices. Adjustment of items of recoceliation statement.

i. Salary Control Registers

salary control register is prepared

Pay bills-computrized. Pay bills-manual. Pay bills-attached staff. Debit side Credit side

1) Pay and allowance 1) Pay roll deductions (For own employees)

2) I.O.T 2) Miscl. deduction (For attached employees) 3) Net payable

* Deduction must be remitted within the same month* Debit credit advice must be issued within the same month

j. Loan and Advances to Employees

Maintenance of subsidary ledgers. Make sure monthly recovery. Adjustment of TA & temporary advance. Training advance will be adjusted within one month after training period. detail on prescribed performa.

2. Banking


a. Imprest and Collection Cash Books

Timely submission. Outstanding salary cheques. Unpaid cheques. Cutting in bank statements. Bank charges (Misc. Coll. Account)

b. Additionaly Funds Demands

Supporting documents. Attestation of documents. Dated signatures. Budget/ Expenduture position. Head of accounts. Segregation of expenditure. Surplus funds.

c. General Sales Tax (Input / Output Data)

Timely submission of data. Delay by GSO divisions. Detailed formats. Payment of arrear in telephone bills. d. Proper Booking of Collection Expenses

Mentainence of register. To record no. of bills collected and amount payable from daily scrolls. To reconcile amount payable and amount debited by bank. Rectification of difference, if any. Collection charges (HBL/P.O/NADRA) debited by F.D office.

e. Capital Contribution / Security Deposit / Revenue Collection

Timely submission of reports. Bank wise total in CP-104. Minus balances of banks. Adjustment through IOT (Cpital & Security deposits). Remittance of funds as per schedule. Correspondence with bank's withholding FESCO fundes and follow-up.

3. Establishment


a. Sales Tax Special Procedure (Withholding) Rules 2007

WAPDA / FESCO will deduct 1/5th of the total sales tax shown in sales tax invoice issued by the supplier.

All FESCO fomation while making payments for purchase of all taxable goods and services, will deduct the said amount from the sales tax invoices of the suppliers.

Amount so deducted will be paid to WAPDA by finance directorate.

b. General Guidelines to Submit Bills for Pre-Audit

Proper bills for purchases showing NTN should be forwerded for pre-audit after approval.

Publicity pad of the supplier is not allowed. GST Invoice issued by the supplier must be attached, where applicable. c. Vetting of Service Books

Enteries in service books of the officials may be recorded well in time and forwerded to finance directorate for vetting.

Complet documents i.e. training certificates, result of departmental promotion

exams, promotion orders, orders of regularization and orders of advance increments etc must be attached with services books.

d. Issuance of Salary Slips

Payments of salary to the officers be released after issuance of salary slipa from finance directorate.

Occupation date/vacation date of WAPDA accomodation allotted to officers be finance directorate well in time.

e. Recoveries

Recovery of pension relief be made after brought into regular cader in respect of the officers appointed on contract basis.

Payment of conveyance allowance to employees residing within work premises is not allowed.

f. Withholding Tax

Withholding tax will be deducted at following rates: . On supplies @3.5%. . On services @ 6%. . On transport services @ 2%. . On rent bills @ 5%.

g. Tax Deductions from Salaries

Income tex should be deducted from the salaries on monthly basis as per prescribed rates and statments of deduction be submitted to income tax departments within stipulated time period.

h. Medical Bills

Medical bills be forwerded to finance directorate for pre-audit after fulfillment of all departmental formalities and duly approved alongwith complete documents.

PIC bills may be approvrd instead of medical performa for re-imbursment.

4. System Implementation and Post Audit (SIPA)

a. Introduction / Functions of SIPA

SIPA was established in 2001 by merging implementation and post audit sections to perform the following functions;

Implementation of new procedures. Checking of divisional accounts to ensure that these are presented as required

under the rules. Post audit of all types of expenditures incurred by the field formations specially

those pre audited at division level. Prepration of reports on the accounts of division visited by the SIPA team.

b. Organizational Chart-SIPA

c. Scope of SIPA

To perform its functions the SIPA section have full access to all types of personnel, records/ documents/ books/ information and all other properties nessecesry for the discharge of it's functions using different types of procedures / testes in the following areas.

Verify capital and revenue expenditures. Utilization of stores issued. Fixed assets formation. Reconciliation of stores recived and issued. Verify that changes (increase / decrese) in salaries are properly authorized.

Checking of new appointments, promotions. Checking of POL expences, repair of vehicles, stationary, etc. To check the replacement of old material. Checking of temporary and long term advances. Checking of employees personal files. Any other area where chances of irregularities are high. d. Deficiencies/ Irregularities

Non-production of material consumption record. Irregular payment of special relief allowance of Wapda and special additional

allowance. Irregular payment of pension relief and special adhoc relief. Un-authorized payments of insurancen of vehicles. Over payment of on account of free supply and dearness allowance. Irreguler payment of on account of advance increment on higher qualification. Wrong allocation / booking of expendetures. Less recovery of motercycle advance. Excess expendetur on account of local telephone calls. Excess claim on account of hotel charges. Excess payment on account of TA / DA more then 10 days. Irregulatories pertaining to log books. Irregular sanction of medical expenses.

5. Assets and Pension

a. Assets Accounting

Previously assets were tranfered to finance directorate at the closing of financial year.

From financial year 2006-07, data was required on monthly basis to comply with International Accounting Standards that requires depreciation to be calculated on monthly basis.

Some problems were noticed in this monthly data collected at the closing of the year.

b. Errors in Assets Accounting

Transfer of previous year's assets is debited or credited in current year's assets.

Quantity is not kept in view with cost which results cost variation in items. At the time of booking of assets, proper head of account is not used which

vary with assets data at the year end.

c. Solutions

As cost of previous year's assets do not exist in division's books, these should be credited H / Q with supporting documents.

Quntitative data on SRs should be kept in view to allocate cost instead of installation period.

Concerend head of account be used.

d. Assets Accounting on Monthly Basis

Data will be obtained from sub-divisors along with statement of installed connections.

Consolidation of above data and cost allocation to quantitative data. Verification of current account portion of capital cost from our assets section. e. Pension to FESCO Employees

EMOLUMENTS Emoluments means the amount drawn by the employees which includes ;

Senior Post allowance. Special pay. Technical pay. Dearness allowance. Increments accrued during LPR. Any other emolument specifically declared.

f. Kinds of Pension

i) Compensation pension:

a) On abolishing of a regular post. b) Retired U/S 17 (I-A) of Wapda act 1998.

ii) Invalid pension:

Invalid pension is granted on medical grounds.

iii) Superannuation pension:

Granted on ataining the age of 60 years.

iv) Retiring pension:

a) Who opts to retire after 25 years qualifying service. b) Compulsory retired from service under removal from service ordinance.

g. Gratuity

Gratuity at the following rates is admissible for service of less than 10 years but not less than 5 years:

When reguler employee is retired or discharged for any reason, one month's emoluments for each completed year of qualifying service.

One & half month's emoluments for each completed years in case of death of reguler employee.

h. Problems in Pension Cases

i) Nomination form:

It should be attached in service book for pension case. In absence of nomination form, the conversation into family pension becomes delay.

ii) List of family members:

List of family members must be completed with date of birth of each members. Birth date of youngest child should be supported with Matriculation certificate / form B / Birth certificate when family pension case is processed for during service death.

iii) Date of application for pension under column no. 9 of 2nd page must be completed.

iv) Leave account: Leave account must be completed as per leave rules and duly signed by D.D.O.

i. Who Will Get Family Pension? First Priority

i) For life time:

a) Widow / Widower.

b) Eldest surviving son till the age of 21 years. c) Unmarried daughters.

ii) For 10 years or remaining portion of 10 years:

a) Eldest widowed daughter. b) Eldest widow of deceased's son of Wapda employee. c) Grand son of deceased of Wapda employee. d) Eldest un married daughter below 21 years of deceased son of employee.

e) Eldest widow daughter of deceased son of employee.

Second Priority

In absence of above, to: i) Father. ii) Mother. iii) Eldest brother below than age of 21 years. iv) Eldest un married sister less than 21 years of age.

6. Budget

a. Annual Budget O & M Budget. Capital Budget.

b. Purpose of The Annual Budget

Budget is issued as a yard stick to carry out Revenue and Capital expenditures within those specified limits assigned in the budget.

c. Action Taken on Variances

Variances in controllable items, if any, are not approved unless fully explained and justified. Final adjustment and re-appropriation is approved by B.O.D.

d. Procedure of Revenue (Re-Appropriation)

Review meeting is held on monthly basis by senior management of FESCO. All targets including financial, revenue and capital expenditures are reviewed.

e. System of Annual Budget (Operation and Maintenance)

Expected Units Sold. Expected No. of Consumers. Operating expenses (O&M) pattern on historical basis and expected facts. FESCO prepares Annual Budget containing following major features.

f. Procedures

Deman estimates as raised by accounting units. Rationalization of demands on the basis of past prectices and future planed

activities. Growth rate assumed for consumers, No. of employees and other non-

financial parameters. Future Invesments affects on O & M. Budget is prepared within the NEPRA determination limits. B.O.D.is the Final Authority to approve the annual budget.

g. Difficulties in Estimates for field units

Salries and wages and other benifits. Vehicles fuel and oil. R & M (Segregation). Rent, rates and taxes (Lease Agreement). TA / DA. Telephone.

h. Procedure of Capital Budget

Demands for funds and allocation for D.O.P, E.L.R and 6th S.T.G and conveyed to authority.

Authority decides and allocates capital budget. Field units have to customize the physical targets as per authority budget. Advances to employees are allocated on the basis of resources available.

Tariffs and tariff categoriesSchedule of Electricity Tariff for Faisalabad Electricity Supply Company (FESCO)

With Effect from 1st March 2008

A-1 GENERAL SUPPLY TARIFF - RESIDENTIAL

Sr.No. TARIFF CATEGORY / PARTICULARS

FIXED

CHARGESRs/ KW/M

VARIABLECHARGES

Rs / kWh

a)

i

ii

iii

iv

V

b)

For Sanctioned load up to 20 kW

Up to 50 Units

For Consumption exceeding 50 Units

For first 100 Units

For next 200 Units For next 700 Units Above 1000 Units

For Sanctioned load exceeding 20 KW

Time Of Use

-

-

-

-

-

315.00

1.40

3.08

4.08

6.53

7.79

Peak Off-Peak

7.04 4.28

A-2 GENERAL SUPPLY TARIFF - COMMERCIAL


FIXED

CHARGESRs/ KW/M

VARIABLECHARGES

Rs / kWh

a)

i

ii

(b)

(c)

For Sanctioned load up to 20 KW

For first 100 Units

Above 100 Units

For Sanctioned load exceeding 20 kW

Time of Use

-

-

365.00

315.00

7.86

7.99

4.97

Peak Off-Peak

7.04 4.28

Under this tariff, there shall be minimum monthly charges at the following rates even if no energy is consumed.

a) Single Phase Connections; Rs. 175/- per consumer per month b) Three Phase Connections: Rs. 350/- per consumer per month

B- INDUSTRIAL SUPPLY TARIFF

Sr.No.

TARIFF CATEGORY / PARTICULARSFIXED

CHARGESRs/ KW/M

VARIABLECHARGES

Rs / kWhB1

B2(a)

B2(b)

B3

B4

Up To 20 kW (at 400/230 Volts)

21-500 kW (at 400 Volts)

Time Of Use

21-500 kW (at 400 Volts)

For All Loads up to 5000 kW (at 11,33 kV)

For All Loads (at 66,132 kV & above)

-

315.00

315.00

305.00

295.00

6.00

4.63

Peak Off-Peak

7.04

6.79

6.54

4.28

3.88

3.63

For Bl consumers there shall be a fixed minimum charge of Rs. 350 per month.For B2 consumers there shall be a fixed minimum charge of Rs. 2,000 per month.For B3 consumers there shall be a fixed minimum charge of Rs. 50,000 per month.For B4 consumers there shall be a fixed minimum charge of Rs. 500,000 per month.

C- SINGLE-POINT SUPPLY FOR PURCHASE IN BULK BY A

DISTRIBUTION LICENSEE AND MIXED LOAD CONSUMERS NOT FALLING IN ANY OTHER CONSUMER CLASS


FIXED

CHARGESRs/ KW/M

VARIABLECHARGES

Rs / kWh

C -1

a)

b)

C -2(a)

C -3(a)

C-1(c)

C -2(b)

C -3(b)

For supply at 400/230 Volts

Sanctioned load up to 20 kW

Sanctioned load above 20 kW &up to 500 kW

For supply at 11,33 kV up toand including 5000 kW

For supply at 66 kV & aboveand sanctioned load above 5000 kW

Time Of Use (Optional)

For supply at 400/230 Voltsabove 20 kW & up to 500 kW

For supply at 11,33 kV up toand including 5000 kW

For supply at 66 kV & aboveand sanctioned load above 5000 kW

-

315.00

305.00

295.00

315.00

305.00

295.00

6.17

5.68

5.38

5.28

Peak Off-Peak7.04

6.79

6.54

4.28

3.88

3.63

D-AGRICULTURE TARIFF


FIXED

CHARGESRs/ KW/M

VARIABLECHARGES

Rs / kWh

D-1(a)

D-2

D-1(b)

SCARP less than 20 kW

Agricultural Tube Wells

SCARP and Agricultural more than 20 kW

-

90.00

305.00

5.94

3.73

Peak Off-Peak

7.04 3.13

FF Note: - The consumers having sanctioned load less than 20 kW can opt for

TOU metering.

E - TEMPORARY SUPPLY TARIFFS


FIXED

CHARGES

Rs/ KW/M

VARIABLECHARGES

Rs / kWh

E-1(i)

E-1(ii)

E-2

Residential Supply

Commercial Supply

Industrial Supply

-

-

-

7.94

8.19

6.94

For the categories of E-l (i & ii) above, the minimum bill of the consumers shall be Rs. 50/- per day Subject to a minimum of Rs-500/- for the entire period of supply, even if no energy is consumed.

F - SEASONAL INDUSTRIAL SUPPLY TARIFF

125% of relevant industrial tariffNot e:

Tariff-F consumers will have the option to convert to Regular Tariff and vice versa. This option Can be exercis

G- PUBLIC LIGHTING


FIXED

CHARGES

Rs/ KW/M

VARIABLECHARGES

Rs / kWh

Street Lighting 8.19

There shall be a minimum monthly charge of Rs.500/- per month per kW of lamp capacity installed.

H- RESIDENTIAL COLONIES ATTACHED INDUSTRIAL PREMISES


FIXED

CHARGES

Rs/ KW/M

VARIABLECHARGES

Rs / kWh

Residential Colonies attached to industrial premises - 7.44

Pattern of Shareholding

No. of share Holder Share holding Total Share Held

7 1to10 7

1 11to100 993

8 Total 1000

Categories of shareholders Numbers Share held Percentage

Individuals 7 7 0.7%Investment Companies --- --- ---Insurance Companies --- --- ---Joint Stock Companies --- --- ---Financial Institutions --- --- ---Modaraba Companies --- --- ---Others (President of Pakistan) 1 993 99.3%

Total 8 1000 100%

final report wapda

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