The Orissa Electricity Regulatory Commission(OERC) has directed the distribution companies (discoms) to reduce the AT & C (aggregate technical & commercial) loss while approving the five-year business plan for the period 2008-09 to 2012-13. The commission has observed that the AT & C loss is still much higher than the set benchmark.
The AT & C loss has come down to 40.5% in 2009-10 from a high of 60% in 1998-99.
?The performance of the distcoms depends largely on the reduction of AT & C loss,? the commission observed.
Stating that the discoms are unable to provide quality service to consumers because of the high AT & C loss, the commission directed that the discoms should take exemplary steps to bring down the loss. Seeking the cooperation of the state government and consumers to achieve this objective, the commission has pointed out that 1% reduction in AT&C loss will result in saving of Rs 50 crore which can be utilised for better service to consumers.
The commission has pegged the total AT & C loss at 23.77% for 2010-11, 22.48% for 2011-12 and 21.99% for 2012-13 and decided to fix the tariff accordingly.
In Orissa, Reliance Energy is in the management of three discoms ? Wesco, Nesco and Southco, while the OERC is in charge of CESU through its representatives. The commission has approved the loss target for CESU at 23.77%, Nesco 19.17%, Wesco 20.4% and Southco 26.25% for 2012-13.
The commission has directed the discoms to invest Rs 2,250 crore of the total Rs 5000 crore estimated for long awaited improvement and upgradation of the distribution system. The remaining amount may be invested by the state government, it has observed.
