Ensure satisfactory supply of power by reducing commercial losses

Bhopal: Secretary Energy Shri Mohammad Sulaiman has exhorted Power Distribution Companies to ensure satisfactory power supply by reducing commercial losses.

In his letter to the power distribution companies, the Secretary Energy said that the State Government is committed to ensuring 24-hour power supply to all domestic consumers. While the Power Management Company (PMC) is responsible for availability of adequate power to meet this obligation, the primary responsibility for commercially sustainable operations remains with Distribution Companies.

Shri Sulaiman said that inter-corporate agreements signed between Distribution Companies and PMC clearly stipulate that power supply plans will be finalised by the holding company in consultation with Distribution Companies and PMC will be responsible for ensuring compliance with the provisions of the once finalised plans. Besides, Power Distribution Companies will ensure smooth supply of power made available by the Power Management Company.

In the letter, the Secretary Energy said that there is a gap between the average cost of supply and the average revenue per unit. Therefore, any increase in supply will result into higher losses. It has already been resolved that to reduce this gap, we need to control our AT&C losses. Therefore, we will have to strengthen the distribution infrastructure. For this, a provision of Rs. 1100 crore has been made. All contracts relating to this investment have specific provision regarding reduction of AT&C losses. We will have to change the mindset that reduction of losses is to come from increase in revenue and not from reducing the supply. Instead of it, we need to reduce losses by increasing revenue and using our technical skills.

Shri Sulaiman directed the distribution companies’ managing directors that the DCCs should be brought under direct supervisory control of CGM (commercial). The DCCs have to report to the CGM of PMC in so far as the power supply position is concerned. Power supply plans should be finalised by the PMC in consultation with the Discoms and once finalised, the DCCs or any field functionary should have no authority to make any change in it. Power supply should be treated as baseline and depending on the availability and instructions of State Load Despatch Centre (SLDC), extra energy be supplied whenever possible. Day-ahead and week-ahead projections be finalised by the DCCs in consultation with the field SEs and ensure that these projections reflect the actual demand.

He said that every officer and employee of the Discoms should realise and remember that his basic role is to provide energy to the consumers and recover revenue. Power theft should be effectively checked. If required, a campaign should be launched for checking power theft with the assistance of retired army personnel and local administration.