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

DISTRIBUTION LOSSES
1995-96 1996-97 1997-98 1998-99
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Distribution Losses (%)
1999-
2000
6.18
2000-01 2001-02 2002-03 2003-04
28.31 24.93 26.46 29.43 42.00 38.36 37.66 39.83 41.5
COMMENTS
T&D losses play the most crucial role in the success or failure of the power sector
reforms. If the DISCOMs fail to reduce the losses, no amount of improvements on
other fronts can give a shining picture of power sector reforms.
The distribution losses appear to be a never-ending problem. During pre-restructuring
period, the losses used to be ranging between 24 and 29 per cent. In the postrestructuring
period, these are ranging between 37 and 42 per cent. A comparison of
the two periods may not be fruitful as the methodology for computing the losses has
been totally changed. Earlier, most of the losses were attributed to the flat rate
agriculture connections. Now it is not possible to shield behind flat rate tabulation.
Hence, it is better to separately analyse the figures of the last five years. There are no
signs of any notable improvement on this key front. The losses have ranged
between 37.66 and 42 per cent. More significantly, the losses in 2001-02 (37.66 per
cent) have increased to 39.83 per cent in 2002-03 and further increased to 41.5 per
cent in 2003-04. The State Regulatory Commission has from time to time
expressed its strong displeasure on virtually no progress being achieved on this
front despite huge investments for system improvement. A firm determination to
tackle the politically sensitive issue of electricity theft appears to be lacking. For a
variety of reasons, a large number of officers and staff do not seem keen to vigorously
pursue cases involving theft of electricity. With frequent transfer of officers at the
instance of public representatives, the morale at the field level seems to be low.
Control of electricity theft is one of the main tasks of the DISCOMs. The RSEB
management used to launch a series of drives against theft and the top management
was able to very often withstand political pressure against such raids. Unfortunately
after restructuring, comparatively junior level officers are posted as MDs of the
DISCOMs. Inevitably, the government influence increases in their working and
very often they are unable to resist Government pressure.