J&K logs highest losses in power distribution

Kashmir Times. Dated: 7/28/2021 11:51:57 AM

NEW DELHI, Jul 27: Jammu and Kashmir tops the list of highest losses among power distribution companies (discoms) in India, while Delhi clocked the lowest loss among discoms.
According to a report, quoting official data, in Hindustan Times, 15 state discoms in Andhra Pradesh, Gujarat, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, Manipur and Madhya Pradesh narrowed their losses by more than 10% in 2019-20.
However, the narrowing of India’s gap between the cost of electricity bought (average cost of supply, or ACS) and supplied (average realizable revenue, or ARR) to 28 paise per unit in 2019-20 led to a fall in discom losses by more than a third to ₹38,000 crore from ₹61,360 crore in FY19, according to government data.
J&K recorded aggregate technical and commercial (AT&C) losses of 60.5% in the year ended March 2020. The high loss figure of J&K was followed by Nagaland (52.9%), Arunachal Pradesh (45.7%), Bihar (40.4%) and Tripura (37.9%). Also, the ACS and ARR gap is the highest in Nagaland (₹5.62 per unit), followed by Arunachal Pradesh (₹4.92 per unit), J&K (₹1.85 per unit), Meghalaya (₹1.80 per unit) and Tamil Nadu (₹1.27 per unit).
While Delhi clocked the lowest discom loss of 10.3%, it was Himachal Pradesh with the least ACS and ARR gap of 0.01 paise per unit. Discoms have traditionally been the weakest link in the electricity value chain, plagued by low collections, rise in power purchase cost, inadequate tariff hikes and subsidy disbursement, and mounting dues from government departments, the report said.
J&K and Ladakh are also part of the Union territory electricity privatization process, with other UTs being Chandigarh, Andaman and Nicobar Islands, Dadar and Nagar Haveli, Daman and Diu and Ladakh.
Meanwhile, the Electricity (Amendment) Bill, 2021, which aims to de-license power supply, allowing multiple distributors in the same area, and giving consumers the option to switch power suppliers, will be presented in the Lok Sabha during the ongoing monsoon session.



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