High Aggregate Technical and Commercial Losses major reason for poor ranking of DVVNL

  • | Saturday | 21st July, 2018

Focus will be on reducing AT&C losses in a time-bound manner. Commercial loss was attributed to low metering, illegal connections, tampering of metering system, low accountability of employees and corruption.DVVNL is responsible for power distribution in 21 districts of UP. It covers an area of 31,34.95 sq km, covering over 4.5 crore population.The PFA has recommended DVVNL for reduction in AT&C losses through improvement in billing efficiency and collection efficiency.Besides AT&C losses, the PFA report expressed concerns over weak operational and maintenance cost efficiency. ATC loss is the actual measure of overall efficiency of the distribution business as it measures both technical as well as commercial losses.”Some of the main reasons for technical losses include overloading, poor repairs and maintenance of equipment and non-installation of capacitors for power correction. DVVNL in first quarter of this year has made the highest revenue recovery.

AGRA: Of the four major power distribution companies of UP which have been ranked as poor in the integrated rating for state power distribution utilities, Agra zone discom, Dakshinanchal Vidyut Vitran Nigam Limited DVVNL ), has been assessed as worst performer by Power Finance Corporation (PFA) following a survey of key parameters.One of the major reasons behind the poor grading is high level of Aggregate Technical and Commercial Losses (AT&C losses) which was calculated at 43.3% in case of DVVNL during 2017. The other reasons include weak cost coverage, poor financial profile and high cost of power procurement.A senior officer of Uttar Pradesh Electricity Regulatory Commission said, “ATC loss is the difference between energy input into the system and the units for which the payment is collected. ATC loss is the actual measure of overall efficiency of the distribution business as it measures both technical as well as commercial losses.”Some of the main reasons for technical losses include overloading, poor repairs and maintenance of equipment and non-installation of capacitors for power correction. Commercial loss was attributed to low metering, illegal connections, tampering of metering system, low accountability of employees and corruption.DVVNL is responsible for power distribution in 21 districts of UP. It covers an area of 31,34.95 sq km, covering over 4.5 crore population.The PFA has recommended DVVNL for reduction in AT&C losses through improvement in billing efficiency and collection efficiency.Besides AT&C losses, the PFA report expressed concerns over weak operational and maintenance cost efficiency. The tariff petition for 2019 has not been filed. DVVNL also did not provide audited account details for year 2016 and 2017 for assessment.Talking to TOI, DVVNL staff officer SK Baghel said, “We are already working on an improvement plan. Focus will be on reducing AT&C losses in a time-bound manner. DVVNL in first quarter of this year has made the highest revenue recovery. We have curbed power theft significantly. Next year, we will in a better position”.

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