Feeder-Wise Revenue Analysis and Monitoring of Energy Sales (FRAMES)

Key Messages

The Indian power-distribution sector has been plagued with inherent issues of high aggregate technical and commercial (AT&C) losses and a wide gap between the cost incurred and revenue realised. Most distribution companies (DISCOMs) continue to struggle with these issues even after the implementation of Ujwal DISCOM Assurance Yojana (UDAY), launched for the revival of the distribution sector. This study puts forth a framework developed with the intention to ameliorate the position of Indian DISCOMS.

• A primary reason for the poor financial condition of DISCOMs is their inability to recover revenue commensurate with the cost of supply, because of either technical losses or inefficiencies in the billing process.
   
• One of the reasons for the ineffective revenue realisation is that revenue accountability is confined to the corporate level and does not percolate to DISCOMs' operational levels.
   
• Our framework, Feeder-wise Revenue Analysis and Monitoring of Energy Sales (FRAMES), tries to enforce revenue accountability at the feeder level.