How power losses are covered up by discoms
The managers of the three heavily debt-ridden power distribution companies (discoms) of Rajasthan seems to have developed expertise in deflating the increasing transmission and distribution (T&D) losses across the state. This has been disclosed by a recent energy audit by the Energy Efficiency Services Limited (EESL), a joint venture of PSUs and the union ministry of power. The audit was commissioned by the state government recently.
It’s common knowledge that the high T&D losses are reflective of increasing power theft in the state. A perusal of the official figures for the past two years suggests that the Jaipur discom topped the list of power theft. According to the discom’s figures, the T&D loses that were 18.39 per cent during 2012-13 shot up to 28.13 per cent of the total electricity available during 2013-14, whereas the EESL audit report put it at as high as 30.51 per cent (for 2013-14).
Similarly, Ajmer and Jodhpur discoms reported a hike from 19.85 pecent in 2012-13 to 21.03 per cent in 2013-14 and from 17.32 per cent to 21 per cent during the same period respectively. However, the audit revealed that during 2013-14 the actual T&D loses for Ajmer and Jodhpur were 24 per cent and 26.58 per cent respectively. A huge jump in losses as also discrepancy in figures by any reckoning.
Conceding the fact that the audit found a loss of over 30 per cent during 2013-14. The managing director of the Jaipur discom, BK Dosi said that the figures were being studied and special efforts would now be needed to check it.
When presenting the revised budget for 2013-14, Rajasthan Chief Minister Vasundhara Raje had then told the State Assembly that the total debt on the three discoms, as on March 31, 2014, was to the tune of about Rs 75,000 crores. They not only topped the list of debt-ridden discoms but their burden was about half of the total debt on all the discoms of the country.
This not only shows the inefficiency of the power sector of Rajasthan but is also indicative of the possible future burden on consumers. Rajasthan Discoms in fact are reportedly preparing for an annual hike of around 23 per cent in their tariffs. And the burden is mostly to pass on to the domestic and industrial consumers as the agricultural consumers have been kept insulated from this by the political leadership, irrespective of the party in power, for electoral reasons. Even those farmers who have been enjoying the fruits of canal irrigation systems are not being made to share the burden of development.
The shocking state of affairs is exacerbated by the fact that the discoms, while in the process of hiking tariffs, have failed to provide power especially in rural parts of the state. Statistics show that the power demand has increased to 2192.27 lakh units — an increase of 50 per cent over 2013. In this light, the increasing T&D losses seem all the more inexcusable.
The audit has made it clear that the state government must crackdown on the discoms and force them to provide more efficient means of power to the people. Local reports suggest that rural areas are still facing power cuts of about four to six hours in a day. But now with this study the government can ensure that errant discoms can no longer take away power from people.