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

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

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code