High transmission losses add 587cr burden on consumers

Jaipur: Rajasthan recorded intra-state transmission losses of 4.33% in the financial year 2023-24, which is significantly higher than comparable states that report losses of around 2.5% to 3.5%, placing it among the worst-performing states in the country.In comparison, Madhya Pradesh reported losses of about 2.6%, Andhra Pradesh around 2.75%, while even larger states such as Tamil Nadu and Gujarat maintained losses within the 3.7% to 3.9% range. This gap resulted in a substantial financial burden on consumers. Against a benchmark of 3%, the excess losses forced the state's distribution companies to procure an additional 1,743 million units of electricity in a single year.Anshuman Gothwal of the Centre for Energy, Environment and People stated, "Although transmission and distribution losses of discoms in Rajasthan are frequently discussed and dominate mainstream discourse, intra-state transmission losses receive comparatively less attention." Gothwal further stated that, at the prevailing variable cost of power that year, the additional 1,743 million units of electricity translated into a burden of approximately Rs 587 crore in a single year, a burden which falls on discoms.As reported in the latest True-Up Petition for FY 2024-25, Rajasthan is the only major state showing a sustained upward trend in intra-state transmission losses over the past five years. The Rajasthan Electricity Regulatory Commission (RERC) directed RVPN to investigate the causes of high losses and instructed it to adopt AI-driven and advanced technologies while studying global best practices."However, RVPN did not submit any concrete study or action plan for identifying and reducing these losses, stating only that it is making efforts to minimise them," added Gothwal. While RVPN cited factors such as changes in agricultural supply time blocks, as well as the state's unique energy requirements, topography and population density, it did not explain the reasons for the increase in losses over the years, nor did it provide any action plan to address them, he said.RVPN's (State Transmission Company) petition for approval of the True-Up for FY 2024-25 and determination of Aggregate Revenue Requirement (ARR) and tariff for FY 2026-27 is currently under consideration by the regulatory commission, officials said.
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