India Reduces AT&C Losses From 22.62% To 15.40% In 10 Years: Minister

India Reduces AT&C Losses From 22.62% To 15.40% In 10 Years, Says Minister

India’s renewable energy installed capacity has recently surged to 4,46,190 MW in June 2024, up from 2,48,554 MW in March 2014, according to data shared by Minister of State for Power, Shripad Naik.

In a written reply to the Parliament, the Minister noted: “India’s total installed capacity has increased from 2,48,554 MW in March 2014 to 4,46,190 MW in June 2024. Specifically, renewable installed capacity has risen from 75,519 MW in March 2014 to 1,95,013 MW in June 2024.”

The Minister also reported that Aggregate Technical and Commercial (AT&C) losses have decreased from 22.62% in 2013-14 to 15.40% in 2022-23. Additionally, all current payments to Generating Companies (Gencos) are up-to-date, and their legacy dues have been reduced from Rs. 1,39,947 crore to Rs. 35,119 crore. Subsidy payments to Distribution Companies (DISCOMS) are also up to date. He added, “The average power purchase cost increased by just 71 paise between FY 22 and FY 23, primarily due to rising transmission costs.”

The key objectives of the Revamped Distribution Sector Scheme (RDSS) include reducing AT&C losses to 12-15% nationwide by 2024-25 and eliminating the average cost of supply minus average revenue realized (ACS-ARR) gap by 2024-25. Lower AT&C losses are expected to improve utility finances, allowing for better system maintenance and power procurement, and ultimately benefiting consumers.

In the Rajya Sabha, Minister Naik informed Parliament about the government’s initiatives to reduce electricity costs for consumers. To lower the cost of electricity to consumers, National Merit Order Dispatch was made operational in April 2019, which is operational for interstate generating stations. This system prioritizes electricity from more efficient, lower-cost plants, optimizing variable generation costs nationwide while meeting technical and grid security requirements. This approach has resulted in the reduction of variable costs on a pan-India basis and these benefits are being shared with generators and their beneficiaries ultimately reducing the cost of electricity to consumers.