Reduction in Financial Losses of UDAY States

UDAY participating states achieve an improvement of 1.00% in AT&C losses and ` 0.17/unit in ACS-ARR gap in FY 2017...

Minister of State (IC) for Power and New & Renewable Energy, Raj Kumar Singh, in a written reply to a question on whether the Ujwal DISCOM Assurance Yojana (UDAY) has been successful in reducing financial losses of State DISCOMS, in Lok Sabha informed recently that as per the data furnished by the participating states of UDAY scheme, financial losses of UDAY states have reduced from ` 51,589.51 crore in FY 2016 to ` 34,826.87 crore in FY 2017.

  Informing about reforms undertaken by the participating DISCOMS including the reduction in AT&C losses, Singh said that as per the data submitted by States, the participating States have achieved an improvement of 1.00% in Aggregate Technical & Commercial (AT&C) losses and ` 0.17 a Unit in the gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR) in FY 2017.

  Further, the Minister stated that Tariffs are determined by the respective State Electricity Regulatory Commission (SERC)/Joint Electricity Regulatory Commission (JERC), taking into consideration several parameters including cost of debt, power purchase costs, operation and maintenance costs, capital expenditure etc. As per information available, the states of Andhra Pradesh, Assam, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Uttar Pradesh and Uttarakhand have increased tariffs in the year 2017-18.

  States have been regularly inviting bids for procuring renewable energy for meeting their Renewable Purchase Obligations (RPOs). The State Electricity Regulatory Commissions (SERCs) of the states of Bihar, Maharashtra, Punjab and Uttarakhand have invoked penal provisions for ensuring RPO compliance. Further, SERCs of Andhra Pradesh, Himachal Pradesh and Rajasthan have aligned the RPO trajectory as notified by Ministry of Power in July 2016, Singh informed.

  In a written reply to a separate question on measures taken by Government to revamp the monitoring system of rural feeder system to reduce AT&C losses, Singh informed that recognizing that feeder monitoring is an important tool for loss reduction, the Government has sanctioned an amount of ` 233.03 crore for online monitoring of rural feeders in the country.

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