BESCOM records unit allocation losses for two consecutive years

BESCOM is responsible for nearly 50% of the electricity distribution in Karnataka. |Photo source: Murali Kumar K

For years, power utilities in Karnataka have been working to reduce distribution losses. Bengaluru Electric Power Company (BESCOM) caused nearly 50% of distribution in the state and caused 9.13% distribution losses in fiscal year (FY) 2023-24.

Over the years, BESCOM’s distribution losses were about 11%, and consumers attracted a lot of firepower to the company. In fiscal year 2021-22, it was 11.63%, while in fiscal year 2020-21, it was 11.99%. Interestingly, in fiscal 2022-23, the allocation loss dropped to unit (9.71%). Trends continued in 2023-24 (9.13%).

Bescom attributes this inclination angle to reduced power interruption. “We have reduced power interruptions. Our two Aerial Beam Cables (ABC) and Underground Cables (UG) cables are almost 100% complete. This helps us improve reliability, thus reducing distribution losses,” said a senior official from the Energy Audit Department.

KERC approved loss percentage

The Karnataka Electric Power Regulatory Commission (KERC) recently issued a multi-year tariff order approved the allocation loss of 9.65% for fiscal year 2025, at 9.40% for fiscal year 2026-27, at 9.40% for fiscal year 2026-27, at 9.15% for fiscal year 2027, at 9.40% for fiscal year 2027. If the loss is less than this, it attracts these targets, which exceeds these targets.

To further reduce losses, KERC instructs all ESCOMs to determine high-loss segments or departments and prioritize CAPEX to reduce them. It further requires them to improve the reliability of the distribution system and improve voltage regulations.

The Commission added: “In addition, the Commission observed that the energy audit reports of towns, including detailed analysis, were not submitted regularly. ESCOM requires energy audits of identified cities and towns. Based on the audit results, the necessary actions are initiated to reduce allocation losses and increase allocation losses to increase allocation losses to achieve target loss levels for various towns comparing less than 15%.

“It has been pointed out that several towns and cities have shown unusually higher energy losses. ESCOM has been directed to prioritize these areas and take corrective measures to reduce losses. ESCOM has been directed to conduct energy audits and submit compliance reports to the Commission quarterly without failure.”

Consumers are still unhappy

Although BESCOM managed to reduce distribution losses, consumers remained unhappy with the progress.

MG Prabhakar, a former member of the KERC Advisory Committee, said: “Under international standards, the allocation loss should be less than 5%, especially because there is now UG cable. These reductions are useless to consumers because there is no responsibility for the power to lose.”