Question : LOSSES DUE TO POWER THEFTS



(a) : whether attention of the Government has been drawn to the news-item captioned `Power theft costs Rupees 20,000 crores a year` appearing in Business Standard dated March 17, 2000;

(b) : if so, the facts of the matter reported therein; and

(c) : the reaction of the Government thereto?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF POWER

( SHRIMATI JAYAWANTI MEHTA )

(a) to (c) : The losses being incurred by various State Governments on account of power theft are not being separately assessed. However, the experience of States undergoing reforms indicates that the losses on account of T&D, theft and pilferage are to the extent of 45% of the power generated. A rough estimate indicates that out of the total energy generated, only 55% is billed (Rs.62,000 crores) of the amount not billed, 20% loss is sustained due to theft and pilferage (Rs.22,500 crores).

Transmission and distribution losses occur on account of energy dissipation in the conductors and the equipment used for transformation, transmission and distribution of power. The technical losses have to be reduced to optimum levels by better design of lines, relocation of distribution transformers, installation of capacitors and use of higher efficiency transformers. Besides technical losses, the commercial and unaccounted losses caused by theft of energy, defective meters, energy audit at all levels and hundred per cent metering of all consumers.

The Central Electricity Authority has issued comprehensive guidelines for reduction of T&D losses to the State Electricity Boards/Electricity Departments. The following measures have been suggested :-

- Upgradation of operating voltages.
- Reduction of length of LT lines.
- Location of transformers near load centres.
- Adoption of low capacity transformers near consumer premises.
- Installation of shunt capacitors; and
- Improvement in construction and operation techniques.

In the Power Ministers` Conference held on 26.2.2000, it has been resolved to undertake the following measures in order to achieve a reduction in the transmission and distribution losses:-

i. Energy audit at all levels;
ii. Time bound programme of 100% metering of all consumers by December, 2001;
iii. Reduction and finally, elimination of power theft within a specified time frame.
iv. Strengthening/upgradation of sub-transmission and distribution system by taking sub-station as a limit on a priority basis.

The Rural Electrification Corporation is providing financial assistance to the State Electricity Boards for undertaking system improvement project in rural areas. The Power Finance Corporation is also providing funds to the State Electricity Boards for System Improvement Projects in urban areas and for installation of capacitors and meters.

Additional funding assistance through a combination of grant and loan for strengthening and upgradation of the projects will also be available from the current financial year under the Accelerated Power Development Programme (APDP). The modalities for implementing the APDP Schemes are being finalised by the Planning Commission in consultation with the Ministry of Power.