The two power distribution companies (Discoms) of Telangana have yet again failed to reach the targets given by the Ministry of Power under Ujjwal Discom Assurance Yojana (UDAY) in improving their performance, particularly in reducing technical and commercial losses and bridging the gap between average cost of energy supply and realisation of revenue.
In the quarterly report issued by the MoP on the performance of the Discoms under UDAY for the last (January-March) quarter of 2018-19 recently, the two distribution companies have fared badly in the aspects that are considered key from the point of view of their financial health. Against the target of bringing down the aggregate technical and commercial losses to 9.9%, the two Discoms were able to achieve only 12.5%.
In the matter of bridging the gap between the average cost of supply (energy) and aggregate revenue realisation, the performance of the distribution companies was far below the expectations as they could bring down the gap only to ₹1.06 per unit against the target of ₹0.14 per unit. The supply cost-revenue gap of over ₹1 per unit is considered very high in the energy sector.
The outstanding dues payable to power producers for more than 90 days were put at ₹15,755 crore and the amount receivable by them from consumers for more than 90 days was put at ₹9.144 crore. However, the Discoms were able to put up creditable performance in terms of distribution of LED bulbs, distribution transformer metering both in urban and rural areas and giving electricity access to unconnected households.
Their performance was moderate in rural feeder auditing and low in the aspects of feeder segregation and smart metering.
When contacted for response, a senior executive of the Southern Power Distribution Company of Telangana Ltd (TSSPDCL) unwilling to be quoted said: “We are in the range of achieving the target of technical and commercial losses but the cost of supply-revenue gap is on the higher side due to costs of market purchases of power and high generation cost of some old plants. The dues payable to power producers is a continuous process although delays take place sometimes.”
Individually, the technical and commercial losses of TSSPDCL were put at 12.25% and the gap between cost of supply and revenue at ₹1.07 per unit. For Northern Power Distribution Company of Telangana Ltd (TSNPDCL), they were put at 12.86% and ₹1.06 per unit, respectively.