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The four electricity distribution companies (discoms) operating in Odisha have incurred losses of Rs 514 crore in 2013-14.
Of the four discoms- Central Electricity Supply Utility of Odisha (Cesu) is managed by state power regulator Odisha Electricity Regulatory Commission (OERC) while the other three — North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco) are controlled by Reliance Infrastructure.
As per provisional figures, Cesu has incurred the highest loss at Rs 215 crore followed by Nesco (Rs 132 crore), Southco (Rs 93 crore) and Wesco (Rs 75 crore).
The cumulative losses of the four discoms have swelled to Rs 6,699 crore from 2000-01 to 2013-14.
The financial losses of discoms are attributed to non-revision in tariff for nine consecutive years (2001-2009) and inadequate hike thereafter, lack of investment in infrastructure and steep AT&C (aggregate technical & commercial) losses touching 40 per cent. Other than their monthly power purchase and salary expenses, the discoms are unable to meet their investment requirement. The assets of Wesco, Nesco and Southco are hypothecated to state owned bulk power purchaser Gridco.
The high distribution losses are due to outdated and fragile distribution network, huge extension of LT (low tension) network and addition of RE (rural electrification) consumers in Rajeev Gandhi Grameen Vidyutikaran Yoajana (RGGVY) and Biju Gram Jyoti Yojana (BGGY).
To arrest the high AT&C loss, the state government has launched the capital expenditure (Capex) scheme with an outlay of Rs 2,400 crore. The scheme aims at slashing AT&C loss by three per cent each year. One per cent reduction in AT&C loss would fetch around Rs 80 crore.
Out of the total expenditure of Rs 2,400 crore, the state government was to provide Rs 1,200 crore while the four discoms would mobilise Rs 1,200 crore by way of counterpart funding.
Assistance under the Restructured Accelerated Power Development and Reform Programme (R-APDRP) is also expected to trim the AT&C losses. The state government has sought Rs 1,000 crore assistance under the scheme including Rs 200 crore for Cesu and Rs 800 crore for Nesco, Southco and Wesco.
R-APDRP is aimed at upgrading the sub-transmission and distribution network, including energy accounting and metering in the urban areas having population of more than 30,000.
