Ministry of Power Reports Drop in DISCOM AT&C Losses for FY 2022-23

08 Jan 2024 CW Team

The program provides result-linked financial assistance to DISCOMS meeting minimum benchmarks and pre-qualifying criteria. The decrease in AT&C losses directly contributes to improving the Average Cost of Supply (ACS) and the Average Revenue Realized (ARR) gap, benefiting end consumers with better quality supply. The program targets reducing AT&C losses to 12-15% and eliminating the ACS-ARR gap by FY 2024-25.

With a five-year outlay of Rs 3.4 trillion (from FY 2021-22 to FY 2025-26), including Rs 980 billion in government budgetary support, the RDSS program is a comprehensive initiative. Advanced metering infrastructure (AMI) implementation and digital solutions have enhanced transparency, reducing commercial losses and streamlining billing processes. Government initiatives and regulatory interventions have been pivotal in reducing AT&C losses, ensuring financial sustainability and reliability in the power sector.

The success of these measures in the latest fiscal year is evident in positive outcomes. Reduced AT&C losses lead to improved revenue collection for DISCOMS, enabling investments in infrastructure, grid modernization, and the integration of renewable energy sources. This contributes to the overall stability and sustainability of the power sector, aligning with the goal of providing reliable and affordable electricity.

While the decline in AT&C losses is positive, experts stress the importance of ongoing efforts. Continued investments in technology, workforce training, and strict enforcement of regulations are crucial to sustaining gains and further enhancing the efficiency of power distribution networks.

The Ministry of Power, in its year-end review, highlighted a reduction in Aggregate Technical and Commercial (AT&C) losses of distribution companies (DISCOM) from 17% in FY 2021-22 to 15.41% in the financial year 2022-23. This improvement is credited to the measures implemented under the Revamped Distribution sector scheme, aimed at enhancing DISCOMS' operational efficiencies and financial sustainability. The program provides result-linked financial assistance to DISCOMS meeting minimum benchmarks and pre-qualifying criteria. The decrease in AT&C losses directly contributes to improving the Average Cost of Supply (ACS) and the Average Revenue Realized (ARR) gap, benefiting end consumers with better quality supply. The program targets reducing AT&C losses to 12-15% and eliminating the ACS-ARR gap by FY 2024-25. With a five-year outlay of Rs 3.4 trillion (from FY 2021-22 to FY 2025-26), including Rs 980 billion in government budgetary support, the RDSS program is a comprehensive initiative. Advanced metering infrastructure (AMI) implementation and digital solutions have enhanced transparency, reducing commercial losses and streamlining billing processes. Government initiatives and regulatory interventions have been pivotal in reducing AT&C losses, ensuring financial sustainability and reliability in the power sector. The success of these measures in the latest fiscal year is evident in positive outcomes. Reduced AT&C losses lead to improved revenue collection for DISCOMS, enabling investments in infrastructure, grid modernization, and the integration of renewable energy sources. This contributes to the overall stability and sustainability of the power sector, aligning with the goal of providing reliable and affordable electricity. While the decline in AT&C losses is positive, experts stress the importance of ongoing efforts. Continued investments in technology, workforce training, and strict enforcement of regulations are crucial to sustaining gains and further enhancing the efficiency of power distribution networks.