Odisha loses Rs 2000 cr per annum on Aggregate Transmission and Commercial (ATC) losses

More than a decade after Odisha (Orissa)took lead in the country in initiating bold reforms in power sector, the state ironically loses about Rs 2000 every year on account of Aggregate Transmission and Commercial loss in power sector. Shockingly, power theft itself accounts for Rs 1200 crore.

The state government clearly emerged as the biggest beneficiary of the reform process, raking in direct and indirect benefits to the tune of Rs 7227 crore. Leave aside ploughing back the money into the sector, Rs 5000 crore by way of surpluses earned from export of power on account of consecutively good monsoons, were used to wipe out past liabilities, even those liabilities which were incurred before the distribution companies were privatized.

Short sightedness on the part of the mandarins in the energy sector led to power shortages, under developed distribution companies, and mounting losses. This is evident from the fact that the state-run CECU reported highest ATC losses of about 47%, while the privatised distribution companies like Wesco, Southco and Nesco had reported ATC loss between 39% to 41% against the national average of ATC loss at 10-12%. Odisha (Orissa) to-day tops the ATC loss figure as well in power theft.

The state government also has warned the power distribution companies to perform to satisfaction. It has asked to ease out those officers who fail to contain losses as per the action plan. The state needs 2650 MW of power. But the state is facing ATC losses of 41% due to power.

The problem, however, is that the government's move to open more energy police stations to check power theft, it has remained non-starter. Earlier, the government had decided to open about 34 power police stations aross the state to curb power theft headed by an Inspector General This proposal has so far remained only in pen & paper.

The authorities in 2008 had planned to establish energy police stations more power theft prone area like Jharsuguda, Bargada, Redhakhol, Angul, Rayagarh, Puri and Bhadrak. Then it had decided to increase the number of energy police stations from 5 to 35. But till now only 3 stations have come up.