KARACHI ELECTRIC SUPPLY COMPANY Presented By: Adeel Mansoor (54080) Kanwar Raheel (54184)

Introduction

Our main focus is to analyze the Services render in an organization so for that purpose we have selected KARACHI ELECTRIC SUPPLY COMPANY (KESC).

COMPANY PROFILE
Karachi Electric Supply Company (KESC) generates and supplies electric power to Karachi, metro poles with a population of over 17million and one of the most populous cities in the world. Karachi is also the financial capital and the industrial hub of Pakistan and by efficiently providing electricity, KESC ensures the engines of the country's economy continue running.

KESC currently provide electricity to over 2.1 million consumers , not only to Karachi but also in the towns of Dhabeji & Gharo in the province of Sindh and Hub , Uthal , Vendhar and Bela the adjacent province of Baluchistan . At present, KESC is the only vertically-integrated power utility in Pakistan and manages the generation, transmission and distribution of electricity. KESC covers a vast area of 6,000 square kilometers and supplies electricity to all the industrial, commercial, agricultural and residential areas that fall under its network

VISION & MISSION To help restore Karachi to its rightful position as the city of lights. COMPANY MISSION To generate, transmit and distribute electricity for the progress and prosperity of the city and of the country To exceed our customers expectations with reliable, stable and affordable electricity, with service to match To enhance the performance, health, safety and overall wellbeing of our people and to strive to recognize their diversity and skills To improve our operational and financial performance, for the benefit of our employees, customers and shareholders To make lasting social contribution to the people of Karachi

OUR MANAGEMENT AND EMPLOYEES Nurturing and developing our substantial talent pool To focus on performance, continuous learning, reward and empowerment To create an environment for personal improvement, innovation open communication and teamwork OUR SHAREHOLDERS Building shareholder value through performance excellence and improved financial results Protecting our biggest asset (our brand name) by acknowledging our social responsibility and accountability as a corporate citizen of Karachi OUR CONSUMER OBJECTIVES Growing the measure of our customer service and customer satisfaction Providing value for money and striving to provide electricity at a reasonable price, especially for ordinary citizens Implementing high standards in quality assurance, process, reliability and public safety, through the implementation of global best practice Striking a balance between economic and environmental need Playing a sustainable social roles in the communities of Karachi

KESC BUSINESS

GENERATION KESC fleet has 1890 MWs of installed capacity to cater to the city load requirement. The main generation units consisting of Bin Qasim Power Station, Korangi Thermal Power Station, Site Gas Turbines and Korangi Gas Turbines, with a new power plant at Korangi (Combined Cycle Power Plant). HOW IT WOKS KESC is replacing existing old KORANGI nad SITE gas turbines by new Gas Engines to increase the operational capacity. KESC also imports power from (IPP) Independent Power Producers, Wapda and (CPPA) Captive Power Plants to offset the deficit of demandsupply gap.

TRANSMISSION HOW IT WORKS KESC transmission system comprises of total 1117 km of 220 kv , 132 kv , and 66 kv transmission lines with 59 grid station. KESC grid is inter-connected with the NTDC grid system through two double circuit 220 KV transmission lines.

SUPPLY CHAIN PROCESS

OPERATIONS
Oil Fuel Spare parts

CREATE MATERIAL
Item Code Manufactur er

Vendor

PURCHASE REQUISITION
Information Quantity Approval

FBA (Finance Business Administration)

Budget

PROCUREMENT
Tender Scrutiny

PURCHASE ORDER LOGISTICS

Best supplier

Feasibility

Custom clearance

PROMOTION:

CUSTOMER CARE CENTRES

These centers are situated at the following locations:

For residential and commercial consumers:

Tipu Sultan Centre: Ground Floor, Plot No. 40/A, Block 6, PECHS, Karachi Malir Centre: Malir Kala Board, Near Police Station, National Highway Nazimabad Centre: KESC Hadi Market Center, IV C 6, Commercial Area, Adjacent Abdullah Floor Mill, Naz. # 4, Karachi.

For Industrial , Residential, Commercial and Agricultural consumers :

Handicraft Building : 4th floor handicraft building Abdullah Haroon road Saddar, Karachi. For residential and commercial and agriculture consumers: Korangi Centre : Plot No: ST-3, Sector-22 Near Jam Sadiq Bridge(KPT Flyover), Korangi Industrial Area, Karachi. State Avenue SITE: E-1,State Avenue near Siemens Chowrangi , SITE Karachi.

Timings of New Connection Centres Are:

Tipu Sultan Centre Malir Centre Nazimabad Centre

9am to 6pm 9am to 6pm 9am to 6pm

Handi-craft Building

9am to 6pm

Korangi Centre

9am to 6pm

State Avenue SITE

9am to 6pm

CUSTOMER SAFETY GUIDELINES

Obey warning signs; "DANGER: HIGH VOLTAGE" signs and other warning signs are posted in substations and grid areas. But remember, all electrical equipment can be dangerous. Electricity and water don't mix; Keep electrical appliances and toys away from water, including rain, wet ground, swimming pools, sprinklers and hoses. Working / playing near Power Lines; Whether you are working or playing outdoors, always look up to ensure you avoid electrical wires. Look carefully since they are not always easily spotted, especially those that are passing through or near tree.

 Look for power lines before climbing trees. Check first before you climb a tree to make sure there are no power lines there. If the tree has wires going through it, choose another tree. Even if wires aren't touching the tree, they could touch after your weight is added to the branch. Never climb poles, towers or Grid fences; If you have lost something over a substation/grid fence, to retrieve it for you. Stay away from lightning. When there is lightning outdoors, get inside a building or car if possible. Keep away from windows and open doors.

UCTURE RUCTURE

NEPRA determines tariff for KESC and Government of Pakistan notifies this tariff to the company
Monthly Meter Rent * Electricity duty rates of Domestic = 6% Commercial / Bulk Supply & Agricultural = 4% Industrial 3.5% of Energy Charges

Single phase Rs 7.50

Polyphase upto 20 Amps 15.00

Polyphase 2090 Amp 20.00

Income Tax Taxable Amount = Energy Charges + Fuel Adj. Charges + Addl. Charges + Fixed Charges + Electricity Duty + Meter Rent + PF Penalty

Industrial and commercial consumers are also subject to Income Tax as per nofitication of CBR

(i) Does not exceed Rs. 400/(ii) Rs. 401 to 600/(iii) Rs.601 to 800/-

Rs. 60/-

(vii) Rs.3001 to 4500/-

Rs. 450/-

Rs. 80/-

(viii) Rs. 4501 to 6000/-

Rs. 500/-

Rs. 100/- (ix) Rs. 6001 to 10000

Rs. 650/-

(iv) Rs.801 to 1000/-

Rs. 160/- (x) Rs. 10001 to 15000

Rs. 1000/-

(v) Rs. 1001 to 1500/(vi) Rs. 1501 to 3000/-

Rs. 300/- (xi) Rs. 15001 to 20000

Rs. 1500/-

Rs. 350/- (xii) Rs. 20000 and above

10% of the Taxable Amount

General Sales Tax

General Sales Tax as per notification of CBR

Taxable Amount = Energy Charges + Fuel Adj. Charges + Addl. Charges + Fixed Charges + Electricity Duty + Meter Rent + PF Domestic Penalty Agricultural

16% of Taxable Amount, except consumption under 100 Units 16% of Taxable Amount, except for Tube well consumers 16% of Taxable Amount

Commercial

Industrial

16% of Taxable Amount

Steel Meters

Rs./ 6.00 per Unit

Industrial Zero Consumer List Provided by CBR Rated

Others Charges TV License Fee Domestic @ Rs. 25/= per TV Set, implemented since 01-08-2004

Commercial / Industrial

@ Rs. 50/= per TV Set, implemented since 01-08-2004

Bank Charges

@ Rs. 8/= per Payment implemented since 01-07-2006.

RECOMMENDATIONS:
As separate treatment of KESC would create a lot of problems in future so for that we would like to make the following recommendations Accounting separation of generation and distribution functions of KESC, within the scope of one company, irrespective of whether it remains in private sector or its privatization is reversed. Acquisition of transmission assets of KESC by NTDC. Treatment of generation assets of KESC as an IPP, applying the standard regulation and financial rules. Direct purchase of electricity by KESC from Kannup, PASMIC and other IPPs be done away with. It should come via CPPA/NTDC with their standard pricing framework. All other generations capacities installed by KESC must be treated as independently.

Generation investments in Karachi should be open to all third parties and should not remain the exclusive domain of KESC. In its current and expected future financial condition, it may not be able to make generation investments.

Ministry of Water & Power, PPIB and other agencies relevant to power sector, should plan for power requirements of Karachi, in an integrated fashion and should not depend or relegate Karachis power planning to a private agency which is beset by many problems and is expected to remain in depression.

Although they have a SAP based system, so they are just wasting their time energy by recording the data manually. As they are using Stock Cards so for that they require extra labor which is increasing their expenses.

THANK YOU