Free power for agriculture is usually blamed for major portion of the losses that the discoms incur. But in reality, it may be that the discoms are trying to bury commercial losses underneath the unmetered supply for agriculture. In effect, subsidy for agricultural consumption could actually be subsidising energy theft.
Widely known among transmission and distribution circles, this phenomenon has recently found a mention in the report of the task force on energy, which has not minced words in suggesting metering of all distribution transformers, including those supplying for agriculture, under the measures for reducing subsidy burden.
As a long-term measure, the distribution transformers supplying power to agriculture should be metered, the report suggested, and said it would help in segregating agriculture sales from losses, thereby revealing the actual loss levels of the discoms.
As admitted by the discom sources, the Operations officials from various circles take the liberty of showing a great amount of commercial losses under the head of the agricultural consumption, taking advantage of the fact that both are unmetered. Commercial losses, on the other hand, arise out of theft and illegal practices by consumers of various categories.
The report noted that the agricultural subsidy is growing by the year due to increase in Cost of Supply (CoS) to agricultural category, and increase in agricultural sales.
The CoS has increased from Rs. 3.58 per unit in 2011-12 to Rs. 5.2 per unit in 2013-14 for TSSPDCL, and from Rs. 3.82 to Rs. 5.51 for TSNPDCL.
For both the discoms together, approved sales have gone up to 9,837 MU from 8,943 MU during the same period, and the subsidy, from Rs. 3,288 crore to Rs. 5,238 crore.
If the trend continues, agricultural subsidy requirement could cross Rs. 10,000 crore mark in the coming five years, the report warned.
Resurvey of the agricultural services for identifying genuine beneficiaries, and implementation of High Voltage Distribution System on larger scale were suggested as remedial measures, apart from demand side management measures such as mandatory installation of capacitors, insistence on using ISI marked pump-sets, and installation of solar pump-sets.
