CAG blames PDD for huge T&D losses

CAG blames PDD for huge T&D losses
If such losses decrease by 3%, Rs 93.43 Cr revenue would go in PDD kitty
SYED AMJAD SHAHJammu, April 4: Holding Power Development Department (PDD) responsible for failing to control the Transmission and Distribution (T&D) losses in Jammu and Kashmir, theComptroller and Auditor General (CAG) of India Wednesday said if T&D losses decrease by 3 percent per year it would add revenue of Rs 93.43 crore to the department annually.
It further disclosed that T&D losses have gone up to 62 percent in 2010-11 due to unsatisfactory implementation of the centrally sponsored programmes in the State.
“As per memorandum of understanding executed with Government of India (GoI) under APDRP in April 2012, the government was committed to bring down the T&D losses to 25 percent from 46 percent by December 2006,” disclosed the CAG report, which was tabled in Assembly today.
The report said these losses had alarmingly gone up from 45 percent in 2005-06 to 62 percent in 2010-11 due to unsatisfactory implementation of the centrally sponsored programmes.
Maintaining that reduction in these losses is must to make PDD financially self-sustainable, it said, “Reducing T&D losses was important as three percent decrease in losses per year could add Rs 93.43 crore to the revenue of the department annually”.
It said main reason for such high energy losses were due to significant number of unmetered consumers and theft/misuse of electricity.
The CAG report revealed that while approving tariff for 2010-11, the SERC had noted that T&D losses in the State were amongst the highest in the country.
“Despite taking several initiatives to reduce such losses in the State over the years, the PDD has miserably failed in controlling the losses,” it said.
The audit report observed that despite assurances to make sincere efforts to reduce T&D losses to an acceptable level, such losses for 2010-11 were at staggering 62 percent.
According to CAG report, 8,236,53 energy units were purchased in 2006-07; in 2007-08 it was 8,743,96 units; in 2008-09 it was 9, 147, 65 units and in 2010-11 the purchased power was 10, 667,23 units.
It stated that 4,030,84 energy units were sold in 2006-07. “The figure was 3, 341, 64 units in 2007-08; it was 3,538,70 units in 2008-09 and 4,041,00 in 2009-10,” it said.
Referring to the energy losses, the CAG report disclosed that 4, 205, 68 energy units were lost in 2006-07. “In 2007-08 the losses were 5, 412, 32 units, in 2008-09 it was 5,608,51 units, in 2009-10 it was 6, 537, 65 units and in 2010-11 it was 6,626,23 units”.
The CAG report disclosed that in 2006-07, the percentage of energy losses was 51.06 while in 2007-08 it was 61.90, in 2008-09 it was 61.27, in 2009-10 it was 63.04 and in 2010-11 it was 62.12