Curbing Power Transmission & Distribution losses

The Central government and the Asian Infrastructure Investment Bank (AIIB) signing a loan agreement for $304 million US dollar Assam Intra-State Transmission System Enhancement project is a significant step to strengthen the State's electricity-transmission system. The project aims at addressing the problem of congestion in electricity distribution and transmission network deficiencies which has been identified as one of the key reasons behind the substantial energy and peak demand deficits. Successful implementation of the project is vital to improve the transmission network and reducing transmission losses in the State. The 'Economic Survey-2021' brought to light that India's Transmission and Distribution (T&D) loss is quite high and in the range of more than 20 per cent against the ideal level of six to eight per cent. This means that more than 20 per cent of electricity generated by the country is lost during transmission causing huge revenue losses to the Power companies and also depriving the household and commercial consumers from quality Power service. The report states that in 2014, the Central government approved the 'Integrated Power Development Scheme' to facilitate the States' utilities to ensure quality and reliable 24x7 Power supply in the urban areas with a total outlay of Rs. 32,612 crore. So far, projects worth Rs 30,991 crore have been sanctioned to the States and the distribution strengthening has been completed in 442 of the 546 Circles till the end of September 2020. In the Rural Electrification sector, 100 per cent village electrification under the 'DeenDayal Upadhyaya GramJoyti Yojana', and universal household electrification under the 'Pradhan Mantri Sahaj Bijli Har Ghar Yojana' (Saubhaagya) are two key programmes.

In Assam, 34 lakh households have been provided four energy-efficient LED bulbs of 9 watt-power under the 'Mukhya Mantri AkashdeepYojana' (MMADY). Bringing down the T& D losses is equally important to achieve the desired economic impact of these programmes. According to Ministry of Power, the Aggregate Technical & Commercial (AT&C) loss in Assam is quite high to the tune of 31.09 per cent. The Assam Electricity Grid Corporation Limited (AEGCL) -- the sole transmission utility in the State for the operation maintenance and development of the transmission system -- currently operates 66 substations with 6,882 megavolt-ampere capacity, and its transmission network comprises 5,701 circuit kilometres of transmission lines. The project components include constructing 10 transmission substations and laying transmission lines with associated infrastructure, updating 15 existing substations, transmission lines and existing ground wire to optical power ground wire and provide technical assistance to support its implementation. As on December 31, 2020, Assam has distributed 68.17 lakh LED bulbs and achieved 41 per cent progress in smart metering. Power theft, faulty meter reading, unmetered electricity supply, and energy deficiency are factors that contributes to T & D losses. Post 'Ujjwal DISCOM Assurance Yojana' (UDAY), the scenario has improved, and the State is ranked fifth in quarterly performance ranking of the UDAY States. The T&D losses influence the Power tariff fixed by the State Regulatory Commission as the loss results in increase in distribution costs. The UDAY is a scheme for achieving fiscal turnaround of the State-owned Power distribution companies (DISCOMs), reduction of cost of generation of power, development of renewable energy and energy efficiency and conservation. The factors identified by the Ministry of Power which are responsible for AT&C losses and T&D losses are overloading of existing lines and substation equipment, poor repair and maintenance of equipment, non-installation of sufficient capacitors/reactive power equipment, low metering/billing/collection efficiency, theft and pilferage of electricity and tampering of meters. The solution therefore lies in addressing theses issues. The primary responsibility of reducing the AT&C losses in the distribution networks lies with the State government and for cash-strapped states like Assam this is a challenging task. The hard reality is that delay in the upgrading transmission and distribution will add to the cumulative burden of AT&C and T& D losses. However, the project to be undertaken with the AIIB does not put to rest the speculations on privatisation of the Assam Power Distribution Company Limited (APDCL) triggered by the Electricity (Amendment) Bill-2020 and Standard Bidding Document. Assam produces only 200 megawatts of its total peak hour demand of 1400 megawatts and the State meets that shortfall by procuring Power from the Central Grid. The present scenario results from failure of the State to arrest the high cost as compared to low for attaining self-sufficiency in Power production and successive governments in the State must own the responsibility. Compared to this, the smaller in size State of Tripura not only attained self-sufficiency in Power generation but also supplied surplus Power to the Central Grid and also Bangladesh. Attaining self-sufficiency in electricity production is critical to economic progress of the State. Privatisation is showcased as a viable solution to upgrading the Power infrastructure and bringing down the losses. However, privatisation will come at a cost to the consumers.