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

Madhya Pradesh
Collection Efficiency
The collection efficiency in respect of agricultural and domestic consumer categories
has suffered after restructuring. In the case of agricultural consumers, the collection
efficiency has deteriorated progressively from 88 per cent in 2000-01 to as low as 21
per cent in 2004-05. It is equally poor for the domestic consumers and has come down
from as high as 95 per cent in 2000-01 to 79 per cent in 2004-05. Even, the collection
efficiency for industrial and commercial categories of consumers is declining.
Transmission and Distribution/Aggregate Technical and Commercial Losses
The percentage T&D losses from 1995-96 to 1998-99 were shown to be in the range
of 19-21 per cent. After restructuring, the losses rose to 31.94 per cent in 1999-2000
and 47.18 per cent in 2000-01. The reduction in the loss levels, after restructuring, has
been slow and dropped only by less than 3 per cent in four years (43.48% in 2004-05).
MPERC has fixed higher targets for loss reduction in its tariff order dated 31March
2006, in respect of the three DISCOMs for 2006-07, spread over a control period as
indicated below:
DISCOM
Prescribed By the Commission
Indicated by the
DISCOMs
2005-06 2006-07 2007-08 2008-09 2005-06 2006-07
Poorv Kshetra 35.5 32.5 29.5 26.5 38.73 35.88
Paschim Kshetra 31.7 30 27.5 25 31.5 30
Madhya Kshetra 41.6 37 32 27.5 41.6 38
(Source: MPERC)
AT&C losses reduction target for 2005-06, as prescribed by the Commission, has been
achieved by Paschim Kshetra and Madhya Kshetra DISCOMs, whereas the same has
not been achieved by the Poorv Kshetra DISCOM, there it is 3.23 per cent above the
target. It appears that after restructuring and proactive role of MPERC, more realistic
loss levels are being indicated.
The targets of AT&C losses given in the FRP are not in conformity with those
prescribed by the MPERC. The targets prescribed by the Commission are aimed at
bringing these losses closer to the level of 15 per cent (as mandated in the NTP). In
view of the above, there is a fresh need to look at the targets set for AT&C losses in
FRP, so that these are in conformity with those fixed by the Commission.
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