Budget 2019 wishlist: Here are the key challenges for power sector

Key challenges

• The revenue shortfall that is, the gap between average cost and average revenue per unit supplied is starting to widen again, causing utilities to delay on payments to suppliers.
• The AT&C losses, although reducing over the years, have remained unchanged in FY19. The current levels are still higher than the policy target, which may cause regulators to disallow them
• Distribution utilities are facing growing competition from decentralised energy resources and must invest in new technologies to improve operational efficiency to be competitive.
• Regulatory uncertainty and stranded assets continue to be a drag to new investment and need an early resolution.