Moneycontrol
Dec 07, 2017 11:44 AM IST | Source: Moneycontrol.com

Discoms may not be allowed to pass AT&C losses over 15% to consumers

The power minister said the citizens have the right to 24x7 power supply and the discoms would need to tie-up with capacities to maintain uninterrupted power supply.

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The government is contemplating a new law that will prevent power distribution companies (Discoms) from taking into consideration losses arising from pilferage/theft exceeding 15 percent for tariff determination. The measure is to ensure Ujwal DISCOM Assurance Yojana (UDAY) target compliance, reports Financial Express.

The report has quoted Power Minister RK Singh saying the aggregate technical and commercial (AT&C) losses due to discoms’ inefficiency would not be passed on to consumers.

He further stated that the new tariff policy would cap cross-subsidy charges at 20 percent. This would help lower industrial electricity tariffs that are  currently hovering around the unrealistic rate of Rs 7/8 per unit, hurting the ‘Make in India’ initiative that aims to boost manufacturing.

Under the UDAY scheme, which was launched in 2015, discoms have reduced their AT&C losses to 21 percent from 26 percent in FY15.

International Solar Alliance (ISA) will help local solar firms to gain substantial experience and allow them to participate in projects in ISA countries comprising nations mainly from Latin America and Africa, he added.

Citizens have the right to 24x7 power supply and the discoms would need to tie-up with capacities to maintain uninterrupted power supply, said Singh.

The minister added that the government plans to mandate local manufacturing for projects having an aggregate capacity of 20 gigawatt (GW) till 2022, when the domestic solar capacity would hit 100 GW from 15 GW at present.

tags #Economy

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