Centre takes steps to reduce energy cost-revenue gap

Union Ministry of Power has written to the state governments recommending shifting of the control of the 33kV substations to the state transmission utilities for a reduction in losses and improvement in the availability of the network. 

It said by better upkeep of 33 kV system, incremental revenue of Rs 7,865 crore per annum could be achieved on account of reduction of losses and improvement in availability.

“I am directed to say that the sub-transmission system plays an important role as an interface between transmission and distribution system. It is critical for the reliability of the power supply system. However, the sub-transmission system is beset with problems of higher losses and inefficient performance,” said a Ministry letter to all state chief secretaries and the union territories.

A committee set up by the MoP suggested that measures for reduction of losses in the sub-transmission system and for ensuring reliability and efficient performance and to make a recommendation for promoting investment in sub-transmission system.

The Committee observed that losses at 33 kV are about 4.8 percent, while the loss in 66 kV-220 kV level is only 1.72-2.39 percent. Besides, yearly availability at 33 kV is about 96.3 percent, while the same in 66 kV-220 kV level is 98.5-99.4 percent.

“There is considerable scope for improvement of the performance of 33 kV system, which is presently maintained by DISCOMs, in terms of reduction of losses and improvement in the availability of the network. The distribution system being an end-consumer facing entity, the focus of DISCOMs is generally on the quick restoration of supply in case of any fault or granting connection to the new consumers, rather than on long-term planning and expansion of the distribution network. Further, due to the poor financial health of DISCOMs, coordinated planning and expansion of 33kV system including the adoption of new technologies and the overall operation and maintenance levels of the 33 kV system are not comparable to that at 66 kV and above voltage levels,” it said.

It said that if losses can be reduced from 4 percent to 3 percent, then energy saved could be of the order of 8.99 billion units per annum and incremental revenue to states from loss reduction would be Rs 4,495 crore per annum (assuming a rate of electricity at Rs 5 per unit).