High tech and commercial loss sapping energy

BHUBANESWAR: While the State faces acute shortage of power, the aggregated technical and commercial (AT&C) loss is more than 41 per cent as against sustainable level of 15 per cent. As p
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BHUBANESWAR: While the State faces acute shortage of power, the aggregated technical and commercial (AT&C) loss is more than 41 per cent as against sustainable level of 15 per cent.

As per the estimate of the Orissa Electricity Regulatory Commission, one per cent reduction of AT&C loss will save Rs 48 crore. This means that nearly Rs 2,000 crore is going down the drain annually and the distribution companies (distcoms) are sustaining the loss.

The distcoms have failed to reduce the transmission and distribution (T&D) loss even after a decade of privatisation of the distribution business.

After segregation of the distribution business from Gridco, four distcoms were formed and they were privatised in 1999.

Data available from OERC said 25 per cent of the AT&C loss is due to theft by consumers and they are being aided by dishonest employees of the distribution licencees.

The AT&C loss of the Central Electricity Supply Utility (CESU) till September, 2009 was 41 per cent as against the commission benchmark of 27.77 per cent for the current fiscal. The loss level of the Reliance Energy managed NESCO, WESCO and SOUTHCO was 38.65 per cent, 36.44 per cent and 52.52 per cent during the same period. However, the commission had set a target to reduce the AT&C loss to 24.54 per cent, 24.05 per cent and 29.36 per cent respectively.

The distcoms sustained maximum loss in the low transmission (LT) sector where domestic consumers constituted the bulk of users. The actual LT loss during this period was 55 per cent as against the approved loss level of 34 per cent for the current fiscal.

Ironically, only 22 per cent of the State’s population has electricity. The condition of the distcoms will go worse after the completion of the rural electrification programme under Rajiv Gandhi Gramin Vidyutkaran Yojana, a senior Government officer feared.

The average power demand of the State is 2400 mega watt while the peak demand had gone up to 3200 MW. While the State is facing an average shortfall of about 600 MW, the power shortage during the peak hour is about 1000 MW. However, the current shortfall is a notch down due to less demand in winter.

The State power trading corporation, Gridco, has projected the peak demand of the State at 3379 MW in 2010-11 and this is likely to go up to 4000 MW in 2013-14.

Since reduction of technical loss required huge investment in infrastructure development, the distcoms have shifted their focus on reduction of commercial loss.

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