Discoms' aggregate technical & commercial losses down in FY22

07 Dec 2022 CW Team

Aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17 per cent in 2021-22 from 22 per cent in the previous year.

Reduction in AT&C losses improves finances of utilities (discoms), enabling them to better maintain the system and buy power as per requirement and benefit the consumers, a power ministry statement said. The AT&C loss and ACS-ARR (Average Cost of Supply-Average Realizable Revenue) gap are key indicators of discoms' performance.

Ministry of Power has taken a number of measures to improve the performance of utilities, the statement said. Preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that AT&C losses have declined significantly to 17 per cent in FY2022 from 22 per cent in FY2021, it stated.

Loss-making discoms will not be able to obtain financing from PFC (Power Finance Corporation) and REC until they develop an action plan for reducing the losses within a specific timeframe and obtain their state government's commitment to it, according to revised prudential standards adopted by the ministry on September 4, 2021.

The ministry also decided that a loss-making discom will only be eligible for future assistance under any scheme for strengthening the distribution system by discoms if it agrees to reduce its AT&C losses / ACS-ARR gap to predetermined levels within a predetermined timeframe.

According to the Revamped Distribution Sector Scheme (RDSS), funding under the programme will only be made available if the discom agrees to follow a predetermined trajectory for loss reduction.

Additionally, the ministry has collaborated with distribution firms to secure the funds required under RDSS for implementing the loss reduction measures.

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Aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17 per cent in 2021-22 from 22 per cent in the previous year. Reduction in AT&C losses improves finances of utilities (discoms), enabling them to better maintain the system and buy power as per requirement and benefit the consumers, a power ministry statement said. The AT&C loss and ACS-ARR (Average Cost of Supply-Average Realizable Revenue) gap are key indicators of discoms' performance. Ministry of Power has taken a number of measures to improve the performance of utilities, the statement said. Preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that AT&C losses have declined significantly to 17 per cent in FY2022 from 22 per cent in FY2021, it stated. Loss-making discoms will not be able to obtain financing from PFC (Power Finance Corporation) and REC until they develop an action plan for reducing the losses within a specific timeframe and obtain their state government's commitment to it, according to revised prudential standards adopted by the ministry on September 4, 2021. The ministry also decided that a loss-making discom will only be eligible for future assistance under any scheme for strengthening the distribution system by discoms if it agrees to reduce its AT&C losses / ACS-ARR gap to predetermined levels within a predetermined timeframe. According to the Revamped Distribution Sector Scheme (RDSS), funding under the programme will only be made available if the discom agrees to follow a predetermined trajectory for loss reduction. Additionally, the ministry has collaborated with distribution firms to secure the funds required under RDSS for implementing the loss reduction measures. Also Read JK Cement begins commercial production at Panna UltraTech Cement commissions new cement capacities

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