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

Uttar Pradesh
The figures of distribution losses shown during the pre-reform period does not appear to
be realistic as there has been a signficant correction in the subsequent years, as has been
the case in respect of other States.
The distribution losses still remains a significant area of concern and account for loss of
more than 30 per cent of the power available for sale at the distribution interface level.
There is a reduction in the level of losses since 2000-01 (as per UPPCL estimates).
However, the numbers in the Tariff Orders of UPERC reveal a different picture. The
high level of distribution losses has also negated the limited benefits of efficiency
improvements achieved in generation and transmission to percolate down to consumers
in the form of lower tariffs.
Aggregate Technical and Commercial Losses
The level of T&D losses does not reveal the complete picture of efficient operations in
the distribution chain as there are often large discrepancies between the amounts billed to
the consumers and the actual revenue collections. This section deals with the level of
Aggregate Technical and Commercial (AT&C) losses for the system, including the
impact of collection efficiency on the T&D losses.
The collection efficiency statistics for the State is provided in the following table. It can
be seen that the collection level have gone down even further during the post-reform
period:
Billing and Collection Efficiency
1998-99 1999-00 2000-01 2001-02 2002-03
Billing
Government 590.43 645.71 677.88 785.27 804.34
Non-Government 4,462.06 4,953.73 5,355.74 5,911.25 5,730.16
Total Billing
Collection
5,052.49 5,599.44 6,033.62 6,696.52 6,534.50
Government 435.6 334.69 592.84 331.58 418.36
Non-Government 3,889.20 4,259.79 4,484.22 4,909.07 4,679.43
Total Collections
Collection Efficiency
4,324.80 4,594.48 5,077.06 5,240.65 5,097.79
Government (%) 73.78 51.83 87.46 42.22 52.01
Non Govt. (%) 87.16 85.99 83.73 83.25 81.66
Overall Collection
Efficiency (%)
85.60 82.05 84.15 78.26 78.01
Excessive Government interference in organisational and operational matters has often
undermined least cost procurement, led to unwise investment decisions, prevented
rationalisation of tariff, and promoted excessive staffing. These shortcomings, combined
7.23