Rishu Garg

The electricity distribution sector in India is considered to be the most important link in the entire power sector value chain. It is also the face of the electricity sector for consumers. The most critical issues plaguing the distribution sector are high aggregate technical and commercial (AT&C) losses, poor billing and revenue collection efficiency and inadequate infrastructure. This sector has been reeling under losses to the tune of Rs.3.8 trillion due to systemic inefficiencies.

CSTEP has observed a lack of awareness amongst employees about AT&C losses, a lack of accountability, inadequate manpower and resources, poor operation and maintenance of the infrastructure, etc.

The launch of Ujwal DISCOM Assurance Yojana (UDAY) in November 2015 gave new hope to the ailing distribution companies (DISCOMs) in India. Karnataka signed up for UDAY with a view to improve its operational efficiency. The DISCOMs under the scheme have to reduce Aggregate technical and commercial (AT&C) losses to 14.2% , and bring down the gap between average cost of supply (ACS) and average revenue realisation (ARR) to zero by 2019.

While DISCOMs are working towards bringing down the AT&C loss through several initiatives, streamlining the current energy audit process in DISCOMs could be a game changer.

The key to the success of a smart meter implementation programme is its ability to provide reliable electricity consumption data, to be used for plugging operational inefficiencies in the system.

Strategic Roadmap for Implementation of UDAY Scheme