T & D Losses Soar As States Take Up Power Reforms

Transmission and distribution (T&D) losses of electrical energy have gone soaring in states where power sector reforms have taken place, according to data collected by the Union ministry of power.

In Orissa, the post-reform T&D loss has jumped to 51 per cent against 23 per cent in pre-reform days. In Andhra Pradesh, the post-reform loss is 45 per cent against 25 per cent earlier. In Haryana, the figures are 40 and 32 per cent respectively. In Rajasthan, T&D losses have increased to 43 per cent from 26 per cent.

Yet, transmission and distribution losses had been one of the major planks of reform of State Electricity Boards (SEBs).

 

In Orissa, the privatisation has brought in a unique problem over the restoration of damaged transmission and distribution lines damaged by the super cyclone last year.

The damage has been estimated at Rs 300 crore. The government of Orissa and the AES which is in charge of power distribution in the cyclone-affected areas, have been unable to find a mutually-acceptable solution to finance the huge loss.

The AES has stated that it is unable to bear such a huge loss from natural calamity specially when it is unable to make profit from sale of power. It was in the process of buying an insurance policy against such natural calamities. However, the cyclone struck before the transmission and distribution networks could be insured.

It demands that either the state government will compensate it for the loss, or, allow the AES raise its tariff three times to recover the loss.

It was then decided to scout for international soft loan to meet the expenditure. Even though the World Bank is reportedly ready to make available the money, the AES and the government of Orissa are quarreling who will take the loan. None apparently is willing to take the responsibility for repayment.

On the other hand, the government has found that only 4,880 mw of power generating capacity has been concluded till March, 2000 since private investment was sought in the private sector.