AT&C losses of power distribution utilities decline to 17% in 2021-22: Power Ministry
The power ministry in its latest statement has said that aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17 per cent in 2021-22 from 22 per cent in the previous year. It stated reduction in AT&C losses improves finances of utilities (discoms), enabling them to better maintain the system and buy power as per requirement and benefit the consumers.
The AT&C loss and ACS-ARR (Average Cost of Supply-Average Realizable Revenue) gap are key indicators of discoms' performance. It said Ministry of Power has taken a number of measures to improve the performance of utilities. it mentioned preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that AT&C losses have declined significantly to 17 per cent in FY2022.
The reduction in AT&C losses has resulted in narrowing the gap between Average Cost of Supply (ACS) and Average Realizable Revenue (ARR). The ACS-ARR Gap (on subsidy received basis, excluding regulatory income & UDAY grant) has declined from Rs 0.69/kWh in FY2021 to Rs 0.22/kWh in FY2022. The government has taken various measures to improve the performance of utilities.
