Even as the national Aggregate Technical & Commercial (AT&C) losses of electricity have reduced to 15.37% in 2023 from 27.8% in 2008-09, many states have continued to high losses even in the past five years. This may hamper the reduction of losses to 12-15% as targeted by 2024-25, according to a report by the Lok Sabha’s Standing Committee on power ministry.
The Committee noted that AT&C losses have increased for the states of Jharkhand, Maharashtra, Mizoram and Telangana during the last five years. Further, Arunachal Pradesh, Chhattisgarh, Gujarat (Uttar Gujarat Vij Company Limited and Paschim Gujarat Vij Company Limited), Jharkhand, Madhya Pradesh (MPWest), Maharashtra (MSEDCL), Mizoram, Nagaland, Puducherry, Sikkim and Tripura have reduced their losses, but were not able to meet the targets for AT&C losses in the year 2023.
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“The Committee feels that increase in AT&C losses in the states like Maharashtra and Telangana is a cause for concern as this trend may hamper the reduction of AT&C losses in the country to the level of 12-15% by the stipulated date,” it said. “The Committee, therefore, recommends that the ministry should take this matter up with the concerned states/DISCOMs so as to avoid further deterioration of the condition related to AT&C Losses in these states.”
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The all-India AT&C losses for state-owned discoms declined to 15.8% in FY23 from 23% in FY21 and 16.5% in FY22 led by infrastructure upgrades and higher subsidy pay-out. However, despite this, losses remain particularly high at over 20% for the discoms in Bihar, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh, as per an earlier report from Icra.
“Despite an uptrend in tariff hikes in a few states in recent years, discoms continue to incur losses due to increase in power purchase costs, operating inefficiencies in a few large states, and a high debt burden,” Vikram V, Vice President & Co-Group Head – Corporate Ratings, Icra had said. “The median 5-year CAGR for power purchase cost was over 5.0% for the period leading up to FY23,
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