INTRODUCTION

Purpose of the study

Purpose of the study was two pronged.

General Purpose

To get acquaintance to the MEPCO operations.

To know what sort of changes management brings in managerial activities.

To see the application of our Professional studies especially.

Specific Purpose
Specific purpose of the study includes.

A partial fulfillment as a requirement for the completion of BBA(Hons) degree.

To objectively observe the operations of MEPCO in general and the operations

of MEPCO in specific.

To make recommendations or implementation plans for the improvement of the

operations of MEPCO in the light of our professional studies.

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) have 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.

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 agreement 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.

Power Wing
Power Wing is currently headed by Member (Power). Power wing of WAPDA
comprising of Generation, Transmission and Distribution has been restructured into
fourteen (14) public limited companies. These fourteen (14) Corporate Entities are ;

Four (4) Thermal Power Generation Companies (GENCOs)

1] Southern Generation Power Company Limited (GENCO-1) head

quarter at

Jamshoro district Dadu near Hyderabad Sindh.

2] Central Power Generation Company Limited (GENCO-2) head
district Jacobabad Sindh.

quarter at Guddu

3] Northern Power Generation Company Limited (GENCO-3) head

quarters at TPS

Muzaffargarh district Muzaffargarh Punjab.

4] Lakhra Power Generation Company Limited (GENCO-4)

Headquarter at WAPDA

House Lahore.
One (1) National Transmission & Power Dispatch Company

(NTDC)

Nine (9) Distribution Companies (DISCOs) as under:

1] (LESCO) - Lahore Electric Supply Company
2] (GEPCO) - Gujranwala Electric Power Company
3] (FESCO) - Faisalabad Electric Supply Company
4] (IESCO) - Islamabad Electric Supply Company
5] (MEPCO) - Multan Electric Power Company
6] (PESCO) - Peshawar Electric Power Company
7] (HESCO)- Hyderabad Electric Supply Company
8] (QESCO) - Quetta Electric Supply Company
9] (TESCO) - Tribal Electric Supply Company

PAKISTAN ELECTRIC POWER COMPANY

The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted
the task of managing the transition of WAPDA from a bureaucratic structure to a
corporate, commercially viable and productive entity. It is a mammoth task and progress

in the initial months was rather slow, but one should keep in mind that responsibility is
enormous and transition is a long drawn process.
Before going into further details of the restructuring programme, it is necessary
to understand the shift in the GoP policy. The GoP, in line with its Strategic Plan
of 1992 approved by the cabinet committee, had decided to restructure the entire
power sector in the country
De-regulation of power sector
Promotion of IPPs
Restructuring of WAPDA
Privatization of select corporate entities
MULTAN ELECTRIC POWER COMPANY

Introduction
MEPCO the Multan Electric Power Company is one of the biggest Distribution
Company of WAPDA. It's area of operation is from Sahiwal to Sadiqabad,
Bahawalnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind,
Balochistan and NWFP

Map
The Charter of MEPCO is to provide the reliability, quality and safety of electric power
supply to the consumers in its Jurisdiction.

MEPCO is envisaged for the creation of the resources and engineering plans for
additions, renovation and augmentation of the distribution system in order to achieve
charter.
MEPCO is putting efforts to make it a viable and progressive utility to take care of
consumer's power demand.

MEPCO History
WAPDA
The electricity supply service in Pakistan, initially, was undertaken by different
agencies, both in public and private sectors, in different areas. In order to provide for the
unified and coordinated development of the water and power resources, Water and
Power Development Authority (WAPDA) was created in 1958 through WAPDA Act,
1958.
AREA ELECTRICITY BOARD MULTAN
The local areas electricity distribution service was being performed by various Regions
of WAPDA. Then the Area Electricity Board (AEB) Multan, on the eight AEBs in
Pakistan, was established under the scheme of Area Electricity Boards in 1982, in order
to provide more autonomy and representation to provincial government, elected
representatives, industrialists, agriculturalists and other interest groups in functions of
the

AEBs.
MEPCO

The environment and structure of the power industry throughout the world are
undergoing dramatic change. The power sector is moving from monopoly to
privatization and from integration to disintegration. To keep pace with this change, the
Government of Pakistan approved a Strategic Plan in 1994 as a consequence of which
the power wing of WAPDA has been unbundled into 12 Companies for generation,
transmission and distribution of electricity.
Multan Area Electricity Board was reorganized into one such corporatized entity under
the name of Multan Electric Power Company (MEPCO) with effect from 14.05.1998,
with the aim of commercialization and eventually privatization.

Mission Statement
Ensure convenient availability of high quality electric power to the people at affordable
price, retaining financial viability of the Company.

Vision
To ensure convenient availability of high quality power in area of responsibility, in order
to alleviate the poverty, improve quality of life and make the Industrial and Agriculture
Sector competitive in the World Market.

Our Commitment
Improve customer satisfaction Reduce Line Losses Weed out corruption Increase
revenue generation

Management Philosophy
Open door policy for all
Tackle all problems upfront

Merit, justice, fair play be the hallmark

Transparency in all fields
Accountability of everyone

Objectives
To play an active role to make Sar Sabaz and Roshan Pakistan
To facilitate agriculture and industrial sector
To ensure un-interrupted & stable power supply to all our customers
State-of-art customer care for entire satisfaction of customers
To provide electricity to every village in jurisdiction of company
To establish, construct and operate reliable electricity distribution network

Culture
MEPCO has its own strong culture. The employees own the company.