Lok Sabha Question No. 1116 (UNSTARRED), answered on 2024-02-08
Subject: Electricity Distribution Companies
Ministry: POWER
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1116

## ANSWERED ON 08.02.2024

## ELECTRICITY DISTRIBUTION COMPANIES

1116. SHRI V.K. SREEKANDAN:

Will the Minister of POWER be pleased to state:

- (a) whether  it  is  a  fact  that  many  electricity  distribution  companies  have achieved  the  prestigious  A+  rating  in  the  latest  consumer  service  rating  of Discoms report and if so, the details thereof;
- (b) whether it  is  also  a  fact  that  there  has  been  a  substantial  reduction  in aggregate technical and commercial losses which were 27 per cent earlier and now have been brought down to 15 per cent and if so, the details thereof;
- (c) whether  it  is  also  true  that  12  per  cent  reduction  in  the  losses  of distribution companies, significantly minimized the overall deficit from Rs. 125,000 crore to Rs. 50,000 crore; and
- (d) if so, the details thereof?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

- (a): A  financially  sound  and  operationally  strong  power  sector  is  vital  for achieving the Government of India's mandate of enabling ease of doing business and ease of living. Electricity consumers are the most significant stakeholders in the power industry.  In its commitment to enhance the electricity services to consumers,  Ministry  of  Power  has  introduced  various  initiatives.  Electricity (Rights  of  Consumer)  Rules,  2020  have  been  promulgated  which  aims  to 'empower' consumers with rights and aims to prescribe the minimum standards of service which the DISCOMs are expected to maintain and mainly includes the right  to  reliable  and  quality  power  supply,  the  right  to  transparent  billing  and tariff information, the right to timely and effective grievance redressal, and the right to compensation to be paid by DISCOM for not meeting the standards of performance.

As the power sector seeks to achieve greater consumer satisfaction and reliability, it is imperative for DISCOMs to identify critical areas, key consumer services and meet minimum standards to strengthen their overall performance. Consumer Service rating  of  DISCOMs (CSRD) was  launched  by  Hon'ble  Power Minister in 2022. It helped DISCOMs to self-evaluate their performance and also compare it with their peer DISCOMs and national averages. The exercise delves into key parameters of consumer services viz. operational reliability; connection services;  metering,  billing  &  collection  services  and  fault  rectification  & grievance redressal.

As per Consumer Service Rating of Discoms (CSRD) Report FY 2022-23, there has been improvement in the number of DISCOMs securing better grading for the services delivered by them to the consumers. While for the year 2022, none of the DISCOMs were in A+ category, for the year 2023, 4 DISCOMs have secured grade of A+ and 8 DISCOMs secured category of A the details of which are placed at Annexure-I.

- (b) to (d): Government  of  India  has  been  implementing  various  performance linked  and  result  oriented  schemes  with  the  objective  to  have  a  financially secure, viable and sustainable power sector (distribution segment in particular). These initiatives have been designed to tackle financial and operational issues to  bring  in  desired  financial  discipline  in  DISCOMs  and  State  Governments. Details of steps taken are:
- (i) Rules to ensure timely payment for subsidy declared by State Government.
- (ii) Ensuring that the tariffs are up to date.
- (iii) Ensuring timely Energy Accounting and Energy Audit.
- (iv) Ensuring that the GENCOs are paid on time.
- (v) Revised Prudential Norms providing that a loss making DISCOMs will not be able to draw loans from PFC/ REC or funds under any Power Sector Scheme of GoI unless they put in place measures for loss reduction.
- (vi) Additional  borrowing space of 0.5% of GSDP  if the DISCOM implements loss reduction measures.
- (vii)  Under  DDUGJY,  IPDS  and  SAUBHAGYA  infrastructure  works  worth  Rs. 1.85 lakh Cr were executed.
- (viii)  Further,  the  Government  of  India  has  launched  Revamped  Distribution Sector  Scheme  (RDSS)  with  the  objective  of  improving  the  quality  and reliability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector. The Scheme has an outlay of Rs. 3,03,758 crore and a Gross Budgetary Support of Rs. 97,631 crore from Government of India over a period of five years from 2021-22 to FY 2025-26.

Fund  admissibility  to  States  and  DISCOMs  will  be  conditional  on  their taking steps to improve their operational and financial efficiencies. As  a  result  of  the  concerted  efforts  of  the  Ministry  of  Power,  the  State Governments and Distribution  companies  to  implement  the  reforms  measures and  adoption  of  best  practices,  Aggregate  Technical  and  Commercial  (AT&C) Losses have reduced from 25.72% in FY 2014-15 to 15.40% (Provisional) in FY 2022-23. Reduction in AT&C losses improves the finances of the utilities, which will  enable  them  to  better  maintain  the  system  and  buy  power  as  per requirements,  thus  benefitting  the  consumers.Further,  the  reduction  in  AT&C losses have resulted in reduction in the Gap between Average Cost of Supply (ACS) and Average Realizable Revenue (ARR).  The ACS-ARR Gap has declined from Rs. 0.78/kWh in FY2013-14 to Rs. 0.45/kWh in FY2022-23. Thus, financial health  of  the  DISCOMs  is  improving.  State  wise  details  are  attached  as

Annexure-II.

*********

ANNEXURE-I

## ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.

1116 ANSWERED IN THE LOK SABHA ON 08.02.2024 *************

|   Sl. No. | State          | DISCOM Name                                                           | Grades   |
|-----------|----------------|-----------------------------------------------------------------------|----------|
|         1 | Delhi          | BSES Rajdhani Power Limited (BRPL)                                    | A+       |
|         2 | Delhi          | BSES Yamuna Power Limited (BYPL)                                      | A+       |
|         3 | Delhi          | Tata Power Delhi Distribution Limited (TPDDL)                         | A+       |
|         4 | Uttar Pradesh  | Noida Power Company Limited (NPCL)                                    | A+       |
|         5 | Andhra Pradesh | Andhra Pradesh Central Power Distribution Company Limited (APCPDCL)   | A        |
|         6 | Andhra Pradesh | Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL)   | A        |
|         7 | Andhra Pradesh | Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL)  | A        |
|         8 | Maharashtra    | Adani Electricity Mumbai Limited (AEML)                               | A        |
|         9 | Manipur        | Manipur State Power Distribution Company Limited (MSPDCL)             | A        |
|        10 | Tamil Nadu     | Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) | A        |
|        11 | Telangana      | Telangana State Northern Power Distribution Company Limited (TSNPDCL) | A        |
|        12 | Telangana      | Telangana State Southern Power Distribution Company Limited (TSSPDCL) | A        |

*************

## ANNEXURE  REFERRED  IN  REPLY  TO  PARTS  (b)  TO  (d)  OF  UNSTARRED QUESTION NO. 1116 ANSWERED IN THE LOK SABHA ON 08.02.2024

*************

## AT&C Loss (%)

|                                                  | 2014-15   | 2022-23   |
|--------------------------------------------------|-----------|-----------|
| State Sector                                     | 25.78     | 15.81     |
| Andaman & Nicobar Islands                        | -         | -         |
| Andhra Pradesh                                   | 10.55     | 8.57      |
| Arunachal Pradesh                                | 67.83     | 57.59     |
| Assam                                            | 25.84     | 16.22     |
| Bihar                                            | 43.99     | 25.01     |
| Chhattisgarh                                     | 27.84     | 16.14     |
| Goa                                              | 13.31     | 11.85     |
| Gujarat                                          | 16.06     | 10.65     |
| Haryana                                          | 32.52     | 12.01     |
| Himachal Pradesh                                 | 16.84     | 10.59     |
| Jammu & Kashmir (JKPDD)                          | 61.27     | *         |
| Jharkhand                                        | 47.85     | 30.28     |
| Karnataka                                        | 18.71     | 13.91     |
| Kerala                                           | 17.64     | 7.05      |
| Ladakh                                           | -         | 30.33     |
| Madhya Pradesh                                   | 30.88     | 20.55     |
| Maharashtra (MSEDCL & BEST)                      | 19.25     | 18.58     |
| Manipur                                          | 48.30     | 13.82     |
| Meghalaya                                        | 40.00     | 23.97     |
| Mizoram                                          | 33.51     | 26.27     |
| Nagaland                                         | 78.48     | 45.81     |
| Puducherry                                       | 13.34     | 17.49     |
| Punjab                                           | 17.20     | 11.26     |
| Rajasthan                                        | 29.28     | 15.90     |
| Sikkim                                           | 42.37     | 36.69     |
| Tamil Nadu                                       | 24.74     | 10.31     |
| Telangana                                        | 13.23     | 18.65     |
| Tripura                                          | 36.23     | 28.15     |
| Uttar Pradesh                                    | 46.32     | 22.33     |
| Uttarakhand                                      | 18.82     | 15.32     |
| West Bengal                                      | 35.35     | 17.32     |
| Others (NMDC & TCED)                             | -         | 10.28     |
| Private Sector                                   | 24.66     | 10.95     |
| Dadra & Nagar Haveli and Daman & Diu (DNHDDPDCL) | -         | 3.58      |
| Delhi                                            | 12.90     | 7.12      |
| Maharashtra (AEML & TPML)                        | -         | 6.48      |
| Odisha                                           | 38.30     | 21.85     |
| Uttar Pradesh (NPCL)                             | -         | 8.36      |
| West Bengal (CESC & IPCL)                        | -         | 8.15      |
| Gujarat (TP Ahmedabad and Surat)                 | -         | 4.02      |
| Grand Total                                      | 25.72     | 15.40     |

## ACS-ARR Gap (Rs./kWh)

|                                      | 2013-14   | 2022-23       |
|--------------------------------------|-----------|---------------|
| State Sector                         | 0.83      | 0.50          |
| Andaman & Nicobar Islands            |           |               |
| Andhra Pradesh                       | 0.18      | (0.37)        |
| Arunachal Pradesh                    | 6.59      | 0.00          |
| Assam                                | 1.00      | 0.62          |
| Bihar                                | 0.24      | 0.00          |
| Chandigarh                           |           | (3.59)        |
| Chhattisgarh                         | 0.28      | 0.26          |
| Dadra & Nagar Haveli and Daman & Diu |           |               |
| Goa                                  | 0.01      | (0.14)        |
| Gujarat                              | (0.02)    | (0.02)        |
| Haryana                              | 0.75      | (0.15)        |
| Himachal Pradesh                     | 0.13      | 0.86          |
| Jammu & Kashmir                      | 2.66      |               |
| Jharkhand                            | 3.39      | 2.45          |
| Karnataka                            | 0.09      | 0.32          |
| Kerala                               | (0.05)    | 0.34          |
| Ladakh                               |           | 2.18          |
| Lakshadweep                          |           |               |
| Madhya Pradesh                       | 1.25      | (0.20)        |
| Maharashtra                          | 0.12      | 1.24          |
| Manipur                              | 3.01      | 1.30          |
| Meghalaya                            | 1.56      | 0.67          |
| Mizoram                              | 4.00      | 1.71          |
| Nagaland                             | 3.03      | (0.32)        |
| Puducherry                           | (0.18)    | 0.39          |
| Punjab                               | (0.05)    | 0.20          |
| Rajasthan                            | 2.63      | 0.20          |
| Sikkim                               | (0.39)    | (0.68)        |
| Tamil Nadu                           | 1.81      | 0.89          |
| Telangana                            | 0.00      | 1.40          |
| Tripura                              | 0.78      | 0.60          |
| Uttar Pradesh                        | 2.16      | 1.19          |
| Uttarakhand                          | (0.27)    | 0.72          |
| West Bengal                          | (0.01)    | 0.32          |
| Others (NMDC & TCED)                 |           | 0.85          |
| Private Sector                       | (0.02)    | (0.19)        |
| Dadra & Nagar Haveli and Daman       |           |               |
| & Diu (DNHDDPDCL) Delhi              | (0.13)    | (0.14) (0.04) |
| Maharashtra (AEML & TPML)            |           | (0.04)        |
| Odisha                               | 0.15      | (0.25)        |
| Uttar Pradesh (NPCL)                 |           | (0.79)        |
| West Bengal (CESC & IPCL)            |           | (0.18)        |
| Gujarat (TP Ahmedabad and Surat)     |           | (0.50)        |
| Grand Total                          | 0.78      | 0.45          |

**************