JERC levies penalty on power department

Owing to the failure to put a check on transmission and distribution (T&D) losses,  Chandigarh electricity department has incurred distribution loss recorded at 13.65 per cent as compared to 13.25 per cent approved by the Joint Electricity Regulatory Commission (JERC). The commission has said the impact of additional losses will be borne by the power department. The loss cannot be passed on to the consumers. The disincentive has been calculated at Rs 3.64/kW. As per regulation, 10 of the multi-year tariff (MYT) regulations 2014, an incentive is given to licensee achievement of norms of distribution losses while fine is imposed for not achieving the target set by the commission. The department in its defense contended that T&D losses have been stagnating between 15.24 per cent and 13.65 per cent from the year 2013-14 to 2016-17.