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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Losses: Transmission losses are being maintained between 5-6 per cent and are
comparable to that of Utilities in other States. Distribution losses still remain a
significant area of concern and account for loss of more than 30 per cent of the
electricity available. The AT&C loss level, standing at more than 50 per cent
during early reform years, has come down to about 40 per cent as per the
Utility data. This aspect would indicate considerably good performance on the
part of the DISCOMs if the same is also ratified by UPERC.
The collection efficiency statistics for the State is indicated in the table below.
It would be seen that the collection levels have gone down even further during
the post-reform period:
Particulars
Table: Billing and Collection Scenario
1998-
99
85
(Rs crore)
1999-2000 2000-01 2001-02 2002-03
Government 590.43
Billing
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 5,052.49 5,599.44
Collection
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 4,324.80 4,594.48 5,077.06 5,240.65 5,097.79
Collection Efficiency (%)
Government 73.78 51.83 87.46 42.22 52.01
Non-Government 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 tariffs from being raised to an efficient level, and
promoted excessive staffing. These shortcomings, combined with weak
planning and demand forecasting, inefficient running of operations, low
emphasis on maintenance and poor financial monitoring and control, have led
to high losses and poor revenue collection.
The trend of AT&C losses is indicated in the graphic below and shows a
downward trend. There has been considerable reduction during 2003-04,