CEA Revises Methodology To Calculate AT&C Losses

The Central Electricity Agency (CEA) has issued a notification seeking a revision in the methodology adopted for calculating Aggregate Technical and Commercial (AT&C) Losses. Earlier, The central authority issued its guidelines on calculation methodology for the computation of AT&C losses on June 2, 2017.  

The addendum of the methodology specified that the collection efficiency of subsidy received and realization from the sale of power together would be restricted to 100 percent. However, the latest order by the CEA said it received feedback from the discoms about the existing methodology. Thus, CEA has amended the same, considering the suggestions from the discoms.

The latest amendment redefined the definition of collection efficiency. As per its revised definition, the CEA said, “Collection efficiency means the actual collection efficiency of subsidy received and realization from the sale of power together in the current financial year,” the order said. 

The CEA said that the existing methodology reduced collection efficiency to 100 percent. It said that the efforts of the discoms in realizing the past dues and liquidation of outstanding subsidies are not being reflected in the calculation of AT&C’s loss calculation methodology.  

The revised methodology also talked about the computation of AT&C losses. These are related to the calculation of the input energy in a million units, transmission losses, sold energy, revenue from the sale of energy, open access, wheeling, unbilled revenue, and subsidy received against subsidy booked during the year, among others.

 Earlier in 2017, the CEA issued detailed guidelines to calculate AT&C losses, claiming that there were variations in the methodology for calculating AT&C due to different ways adopted by various organizations. CEA, with the 2017 order, issued a uniform methodology for calculating the AT&C losses of discoms after discussing the issue by forming a committee comprising representatives from the Ministry of Power, CEA, REC, PFC, and others.