Report of Indian Institute of Public Administration ... - Ministry of Power

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Commission (CERC) in his recent publication, Governing Power, the T&D losses
were as follow:
1994-95 1995-96 1996-97 1997-98 1998-1999 1999-2000 2000-01
18.9% 18.5% 18.9% 18.6% 29.9% 5 38.0% 36.5%
The sudden jump in the percentage of the losses from the year 1998-99 onwards
stands clarified in the words of Shri S.L. Rao, quoted below:
“T&D losses of SEBs have not declined to any significant extent (in spite of ERCs
coming into being). In cases where the numbers appear to be rising, it is more of a
reflection of better information, since the T&D losses (mainly theft) that were hidden
by SEBs under subsidised sales to agriculturists has now been properly restored to
T&D losses.” 6
Power Finance Corporation (PFC), which has been a major source of development
loans to the utilities, and has shaped its lending policy as an instrument to reform the
power sector has provided the following data regarding the past performance of the
KEB and its successor companies, which is revealing:
Table: T&D Losses (%)
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
Karnataka 37.31 34.93 33.83 24.57 23.29 26.08
All-India 30.93 32.86 33.98 32.54 32.53 31.25
Source: CEA (General review).
However, it must be borne in mind that the AT&C losses in Karnataka continue to be
heavy and unabated. The following data will indicate the position:
Table: AT&C Losses of DISCOMs (%)
DISCOM 2002-03 2003-04 2004-05
BESCOM 35.70 43.86 42.99
GESCOM 43.54 43.86 42.99
HESCOM 47.73 31.66 41.64
MESCOM 35.68 25.82 26.62
Karnataka 45.68 35.82 34.72 7
Source: PFC.
5 As per the annual report of KEB, the T&D loss during the year was even more at 30.2 per cent.
6 S.L.Rao: Governing Power, TERI; Page 230.
7 The restructuring has, however, helped in bringing down the AT&C losses from 40.50 per cent in 2001-02 to
34.02 per cent in 2004-05, thanks to strengthening of the system, energy audit, closer supervision and control.
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