Centre tells states to cut down AT&C losses to below 10%

The Centre has asked the states to cut down the electricity transmission and distribution losses to below 10% within one year. In the recent meeting of state power secretaries chaired by Union Power Minister Piyush Goyal, 4,041 towns, spread across the country, were identified for implementation of various programmes, to cut down the losses in six months in the first phase. The steps identified for this include improving bill collection, reducing theft and upgrading the transmission and distribution system.

To cut down the losses, the power ministry is supporting the states under various schemes including Integrated Power Development Scheme (IPDS), Deendayal Upadhyaya Gram Jyoti Yojana, Power Sector Development Fund, to take up the technology upgradation in distribution and transmission sector and installing the latest transformers and feeders across the country.

According to the Union Ministry of Power, Aggregate Technical and Commercial (AT&C) loss in Karnataka is 15.29%. While it is highest in Gulbarga Electricity Supply Company at 19.95%, followed by Hubli Electricity Supply Company 16.09%. While the AT&T losses in Chamundeshwari Electricity Supply Company are 15.14%, it is 12.11% in Mangaluru Electricity Supply Company.

In neighbouring Tamil Nadu, the AT&C losses are 14.53%, and it is 10.96% in Andhra Pradesh. The national aggregate technical and commercial losses in states reduced to 20% in 2016-17 from 21% in FY16, 25% in FY15, and 23% in FY14.

The ministry recently said that most of the states except four - Karnataka, Kerala, Punjab and Assam - have failed to reap the benefits of the Centre’s Ujwal Discom Assurance Yojana (UDAY) in cutting down the AT&C losses.

The UDAY, a turn around scheme launched by the NDA government in November 2015, aimed at improving operational and bill collection efficiency of electricity distribution companies.