Discoms fails to plug distribution leaks and loses ₹3,000 crore in 2020-21 | Bhopal News

BHOPAL: State power discoms who have approached the regulator – MP Electricity Regulatory Commission (MPERC) – seeking a hike in electricity tariffs against an estimated loss of Rs 3,916 crore for the year 2022-23 – have lost more than Rs 3,000 crore in 2020 -21 as “distribution losses”. And that’s above the losses that were approved by the regulator in the tariff order for 2020-21.
Of the three discom – Central discom, Eastern discom and Western discom – only Western discom suffered less distribution losses than allowed by the regulator. Pursuant to Rate Order 2020-21, a distribution loss of 17% was approved for Central Distribution, but it actually incurred losses worth 28.69%. Eastern Discom was awarded 16% loss but suffered 29.19% loss.

According to the approved distribution losses, the two discoms should have lost 7,116 million units in transmission, but they lost 14,567 million units (according to the true up petition filed by the discoms before the regulator). Thus, 7,451 million units of energy were lost beyond the regulator’s allowable distribution loss. If the cost of this power at an average cost of Rs 4.5 per unit is taken into account, it is also worth more than Rs 3,300 crore. A hearing on the true up petition was held before the Regulator on Tuesday at which 10 people from the MP, including Genco MP’s retired additional chief engineer Rajendra Agarwal, raised objections.
“Even the companies bear this loss and it is not passed on to the consumer in the form of a tariff increase, the discoms are ultimately public services and in the end it is a loss for the public. For example, for the financial year 2022- 23, the discoms showed a revenue gap of Rs 3,916 crore and demanded an increase in tariffs and if the distribution losses are within the limits prescribed by the regulator, there will be no need to increase the tariff and overcharge the consumers,” Agarwal told TOI.
“I also raised the issue with the commission at the public hearing held on February 22 and urged the commission to issue appropriate instructions to the distribution companies,” he said, adding: “These distribution losses mainly constitute stolen or unbilled electricity“.


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