State discoms' distribution loss amounts to Rs 565 cr: CAG

Two of the state power distribution companies (Discoms) have incurred heavy distribution losses due to improper management of feeders, maintained the Comptroller and Auditor General of India (CAG) in its report for the year ended March 31, 2011. Dakshin Gujarat Vij Company Ltd (DGVCL) and Paschim Gujarat Vij Company Ltd (PGVCL) incurred combined distribution loss of more than Rs 565 crore, the report noted.

According to the CAG report, the distribution loss was mainly due to reasons such as decrease in maintenance activities, excessive failure of transformers and delay in repairing among others. "In DGVCL and PGVCL the distribiution loss was in excess of Gujarat Electricity Regulatory Commission (GERC) guideline by 213.14 million units (MUs) valuing Rs 105.79 crore (2008-10) and by 1,076.48 MUs valuing Rs 415.01 crore (2007-11) respectively," the report noted.

The CAG report also noted that the increase in the distribution capacity during 2006-11 could not match the pace of growth in consumer demand in all the Discoms as a whole as well as in DGVCL and PGVCL. "The inadequacy of available transformers capacity of discoms to meet the connected load as on March 31, 2011 led to overloading of network and consequential rotational cuts in distribution of electricity."