Page 28 - Tcexpression2021 - Sept to Dec 2020

ELECTRICITY

DISTRIBUTION

SYSTEM IN

INDIA

he Indian power sector is segmented mainly In May/Sept 2020, to revive the health of ailing Discoms
into Generation, Transmission, and Distribution a significant financial intervention by GOI of Rs 90,000
Tsectors. The Distribution sector involves Cr was announced, which is expected to be enhanced
Distribution Companies (Discoms) responsible for to Rs 1,20,000 Cr through Power Finance Corporation
the supply of electricity to the Domestic, Industrial, (PFC) and Rural Electrification Corporation (REC) .
1
Commercial and Agriculture Consumers. In Power These initiatives will improve the financial health and
Sector, the distribution system is a weak link due to operational efficiency of the Discoms.
high Aggregate Technical & Commercial (AT&C) losses,
erroneous metering, poor revenue realisation, and Over the last 15 to 20 years, the Distribution sector’s
inadequate infrastructure maintenance. outlook has vastly improved due to various Regulations
and Schemes introduced by the Central and State
All these factors have contributed to the poor financial Governments.In the coming years, consumers’
health of the distribution utilities. As mandated in the preference towards uninterrupted high-quality power
Indian Electricity Act-2003, the State Electricity Boards supply and fast phase technological developments will
(SEBs) were unbundled for independently handling drive the distribution sector’s growth to new heights.
Transmission, Generation & Distribution sectors and
setting up the Central and State Electricity Regulatory TCE with its vast experience in the power industry is all
Commissions. At present, 58 independent Discoms poised to take up the challenges and provide solutions
operating in India excludes SEBs, where the Generation, to Discoms to improve the overall performance in the
Transmission, and Distribution sectors are yet to be areas such as Due diligence, AT&C loss minimisation
unbundled. studies, smart metering infrastructure, digitisation,
utility-scale battery energy storage system, renewable
Distribution losses in India are around 35-40 %, which integration and IT-enabled services to the distribution
is very high compared to the Global standards. In 2015, utilities across the country.
to reduce distribution losses from 35%-45% to 15%,
Government of India (GoI) launched UDAY scheme.

1 ET Energy World (13 May 2020) and Press Trust of India (13 Sep 2020)

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