Thursday, 3 July 2014

Without political will power distribution losses increases in Haryana

The power distribution losses have increased despite heavy capital investment running in to hundreds of crore  to reduce the losses in absence of political will. During last one year the state government has taken fresh loans amounting to Rs. 8069 crore to strengthen the transmission and distribution network of the state yet the overall distribution losses in Haryana have increased from 28.75% to 29.46% in one year due to half hearted approach of companies and absence of political will to tackle the problem of power theft.

It may be mentioned that last year Haryana availed the financial restructuring plan of Government of India under which all the loans and liabilities of distribution companies as on March 31 2013 were transferred to Government of India and state government. In case of Uttar Haryana Bijli Vitran Nigam the distribution losses in 2012-13 were 32.47 % and these have been increased to 33.41%.Similarly in case of Dakshin Haryana Bijli Vitran Nigam the losses have increased from 24.09% to 25.08% during the corresponding period. There are numerous feeders where distribution losses exceed 50% and in some cases it touches 70%.

In case of DHBVN the defaulting amount has increased from Rs. 2988.01 crore to Rs.3411.93 crore in one year .The increase of more than 414 crore of defaulting amount in one company shows non serious attitude of government to improve the overall performance of distribution companies. Even the defaulting amount in UHBVN has increased from 1564.17 crore to 1568.80 crore despite efforts made by the engineers of company.

The Haryana Electricity Regulatory Commission (HERC) last week said that distribution companies (Discoms) had consistently incurred energy distribution losses over the past 11 years, despite their claims of having made huge capital investments to reduce them.

HERC in its tariff order said that the percentage of losses incurred by the UHBVN from 2001-02 to 2012-13 had been the same during the last 11 years. In case of DHBVN losses had been reduced only by 7.32% in the last 11 years. This situation reflects adversely on the working of the distribution companies. The cost of service had increased due to unreasonably high distribution losses.

According to a senior distribution company official there are verbal instructions given by the ruling party ministers and MLAs that there should be no checking for power theft, the meters should not be shifted outside consumers premises and no disconnection of meters of consumers for any defaulting amount.

Unless there is a political will to check power theft and recover defaulting amount the performance of distribution companies is not going to improve. Under such circumstances how can the performance of companies can improve

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