PrashantNews
The centre on Monday expressed concern over high AT&C losses of power distribution utilities in India which are far above the global average of 6–8 percent.
Union Minister of State for Power and New and Renewable Energy Shripad Yesso Naik while chairing a virtual meeting of the Group of Ministers, called for bringing down the AT&C losses by improving network, adopting new technologies and improving the billing and collection.
He mentioned that year on year gap between the average cost of supply (ACS) and the average revenue realized (ARR) is eroding the financial stability of the Utilities which needs to be brought down. This gap is largely due to under-recovery of costs esp. power purchase costs, non-cost reflective tariffs, distribution losses, etc, he said.
Naik, as chairperson of the Group of Ministers, during the meeting tried to address the issues related to viability of distribution utilities.
In his welcome address Energy Minister, Government of Uttar Pradesh, Arvind Kumar Sharma, convenor of the Group, commended the measures taken by the centre for improving the operational efficiency and financial viability of the distribution utilities. He remarked that pro-active measures by Ministry of Power will have far reaching impact on making country’s distribution sector stronger and healthier. He advocated for adopting and investing in technology in the distribution sector. He emphasised on the need for timely and adequate payment of Government Department Dues and subsidy by the State Governments and effective redressal of consumer grievances.
In his opening remarks, the Union Minister Naik highlighted that the financial viability of electricity distribution utilities, or DISCOMs lies at the heart of India’s energy sector and is very critical for the entire value chain. These entities are the lifeline of our electricity supply chain, connecting power generation to millions of homes, businesses, and industries. However, they face significant challenges that affect not only their financial health but also the sustainability of entire Power Sector value chain.
Energy Minister, Government of Andhra Pradesh, Gottipati Ravi Kumar mentioned about priority being given by the State Government for development of Renewable Energy. He also highlighted the progress made by the State under PM KUSUM and PM Surya Ghar: Muft Bijli Yojana.
Energy Minister, Government of Madhya Pradesh, Pradyuman Singh Tomar emphasised on the need for accurate energy accounting and auditing for reducing line losses and the need to have effective consumer grievance redressal mechanism at each level of Government.
Electricity Minister, Government of Tamil Nadu, Thiru V.Senthil Balaji highlighted the reforms undertaken by the State Government and the role of Smart Metering in improving the revenues of the distribution utilities.
Minister of State (Energy), Government of Maharashtra, Meghana Deepak Sakore Bordikar mentioned about the initiative taken by the State under Mukhyamantri Saur Krushi Vahini Yojana which would help in improving quality of supply of power to farmers and reduce power purchase costs for utilities.
Minister of State (Energy), Government of Rajasthan Heeralal Nagar highlighted the rich renewable energy potential of the State and the projects taken by State under Hybrid Annuity Model for providing low cost day time supply of power for agricultural purposes.
It was agreed that with rich experience of the group, innovative and out of the box solutions will be explored to steer the distribution sector on the path of financial viability. Also, it was agreed to convene further meetings in the member States.
Immediate steps are required to improve power supply health. Line losses, theft of power are the key areas to be focused.