WISE_PPT_Discom Issues and Way Forward_30.10.2023.pptx

Discom issues

1. Concern Areas of Discom & Way Forward 10/9/2024 1

2. Comparison of Energy Sales (MU) – FY 2022-23 10/9/2024 2

3. Comparison of DISCOMs – Metered vs Unmetered / assessed sale (MU) 10/9/2024 3 Reported Dist Loss – 27.5% Reported Dist Loss – 12.25% Reported Dist Loss – 25.12%

4. Comparison of Discoms – Consumer Mix (FY22-23) 10/9/2024 4

5. Defective Meters 10/9/2024 5 East Central West

6. Detailed break-up of Defective Meters (1/2) 10/9/2024 6 URBAN AREA Category East Central West Metered Consumers Defective Meters % Defective Metered Consumers Defective Meters % Defective Metered Consumers Defective Meters % Defective Domestic 5,05,821 1,04,480 7% 16,03,437 3,53,108 22% 16,80,725 70,366 4% Non-Domestic 2,84,505 9,569 3% 2,91,211 30,105 10% 3,45,957 7,860 2% LT Industry 15,019 364 2% 19,615 1,551 8% 26,582 281 1% Agriculture 2,810 448 16% 6,567 2,875 44% 2,806 217 8% Others 7,616 901 12% 9,987 739 7% 13,929 218 2% LT-Total 18,15,771 1,15,762 6% 19,30,817 3,88,378 20% 20,69,999 78,942 4% HT-Industry 891 3 0.3% 1,388 13 1% 2,553 2 0.1% HT-Others 767 3 0% 1,324 28 2% 1,369 - 0% HT-Total 1,658 6 0.4% 2,712 41 2% 3,922 2 0.1% Discom-Total 18,17,429 1,15,768 6% 19,33,529 3,88,419 20% 0,73,921 78,944 4%

7. Detailed break-up of Defective Meters (2/2) 10/9/2024 7 RURAL AREA Category East Central West Metered Consumers Defective Meters % Defective Metered Consumers Defective Meters % Defective Metered Consumers Defective Meters % Defective Domestic 31,77,829 15,60,540 49% 17,62,022 15,95,548 91% 22,90,379 16,95,848 74% Non-Domestic 1,71,943 27,751 16% 71,511 32,207 45% 1,26,308 14,610 12% LT Industry 35,905 4,388 12% 16,603 4,841 29% 22,286 1,630 7% Agriculture 1,498 255 17% 1,499 650 43% 856 264 31% Others 19,234 7,580 39% 12,492 7,883 63% 20,542 5,668 28% LT-Total 34,06,409 16,00,514 47% 18,64,127 16,41,129 88% 24,60,371 17,18,020 70% HT-Industry 274 - 0.0% 157 4 3% 161 - 0.0% HT-Others 180 1 1% 96 3 3% 198 1 1% HT-Total 454 1 0.2% 253 7 3% 359 1 0.3% Discom-Total 34,06,863 16,00,515 47% 18,64,380 16,41,136 88% 24,60,730 17,18,021 70%

8. Observations 10/9/2024 8 Observations It has been noticed that the energy sales to the consumers across the three DISCOMs served with either no meter or defective/faulty meter constitute around 60% to 80% of total sales – This creates doubt about the credibility of the reported distribution loss figures. Majority of Domestic Consumers in Rural Areas are having faulty /defective meters and are being billed on assessment basis. The Agricultural Sales across the three DISCOMs constitute around 40% of total sales of DISCOM. The un-metered agricultural consumers are uniformly billed on the basis of benchmark consumption of 1590 kWh/HP/Annum (3Ph) & 1650kWh/HP/Annum (1Ph) since FY 2018-19 as per Retail Supply Tariff Orders. Consequences Proper billing of un-metered agricultural consumers as per above benchmark and assessed billing for such domestic category of consumers eligible for subsidy now need to be validated since un-metered sales have direct bearing with the subsidy requirement from the Government . This is now important in light of recent amendments in Electricity Rules notified by Ministry of Power.

9. 10/9/2024 9 Subsidy Accounting & Payment - MoP Electricity (Second amendment)Rules 2023 The Accounting of Subsidy shall be done by the distribution licensee, in accordance with the Standard Operating Procedures issued by the Central Government, in this regard. A quarterly report shall be issued by the State Commission for each distribution licensee, in its jurisdiction, giving findings whether demands for subsidy were raised by the distribution licensee in the relevant quarter based on accounts of the energy consumed by the subsidized category and consumer category wise per unit subsidy declared by the Stat Government , the actual payment of subsidy in accordance with section 65 of the Act and the gap in subsidy due and paid as well as other relevant details. The quarterly report shall be submitted by the distribution licensee within thirty days from end date of the respective quarter and the State Commission shall examine the report, and issue it with corrections, if any, in accordance with sub-rule (2), within thirty days of the submission . In case the subsidy has not been paid in advance, then the State Commission shall issue order for implementation of the tariff without subsidy, in accordance with provisions of the section 65of the Act. If subsidy accounting and the raising bills for subsidy is not found in accordance with the Act or Rules or Regulations issued there under, the State Commission shall take appropriate action against the concerned officers of the licensee for non-compliance as per provisions of the Act.

10. MoP –RDSS (SoP) – Subsidy Accounting Mechanism - July 2022 10/9/2024 10 No electricity connection should be released without metering as per extant law and accordingly assessment of energy supplied to subsidized category of consumers to be computed on measured energy through proper metering only. In case of agriculture category, where consumer level metering has not been adopted, energy may be measured at DT level through proper metering of DTs. In case of dedicated agriculture feeder supplying energy to agricultural consumers, energy measured at feeder level through proper metering shall be considered. [ The consumption reflected in feeders shall be adjusted for normative T&D losses as determined by SERC for determination of subsidy .] For mixed feeder , till such time feeders are segregated, total energy shall be measured at feeder level and energy consumed by non–agricultural consumers shall be deducted to arrive at energy consumption of agricultural consumers. [The consumption shall be adjusted for normative T&D losses as determined by SERC for determination of subsidy.] In no case, shall the assessment of energy on the basis of contracted load, per HP basis , flat tariff, lump sum or any other such parameter be considered for computing energy supplied to subsidized consumers for assessment of subsidy amount. Further, all DISCOMs shall migrate from flat rate billing to energy per unit rate billing for consumers other than agricultural category, within a period of six months from the date of issue of this SOP.

11. Suggested Way forward (1/2) 10/9/2024 11 Area of Concern Possible Way Forward Agricultural Consumption Total No of Agricultural Consumers - 40 to 45 lakh Metered & un-metered - 0.5% metered & 99.5% un-metered Share of electricity consumption - @40% across three DISCOMs The Commission may like to revisit the benchmark set for agricultural consumption by conducting scientific study after taking into account the climatic / topographical conditions and conditions of ground water table. As recommended in the tariff policy, t ariff / consumption benchmark for agricultural use may be set at different levels for different parts of a state . The Commission may direct the DISCOM to shift to feeder based metering and billing for the agricultural consumers and ask the DISCOMs to submit the timeline for the same. Assessment based billing to consumer reported to serve with faulty / defective meters Total No of consumers billed on assessment basis - Primarily Domestic Consumers in Rural areas : 54% in Central DISCOM, 44% in West DISCOM and 32% in East DISCOM Share of electricity consumption – East DISCOM 25%, West DISCOM 30%, Central DISCOM 41%

12. Suggested Way forward (2/2) 10/9/2024 12 Area of Concern Possible Way Forward Assessment based billing to consumer reported to serve with faulty / defective meters MPERC Supply Code does not mention about the max duration /period for which the DISCOM is allowed to billed the consumers those have defective / faulty meter on assessment /provisional basis . The Commission may like to amend the supply code Regulations specifying the max duration / period for which DISCOM is allowed to billed the consumers on assessment basis ( Example : MERC – 3 months ) Or the Commission may like to specify ceiling by specifying a percentage of the faulty / defective meter out of total meter at any point of time (Example PSERC – 1% of total number of meter are defective at any point of time). The Commission may direct the DISCOMs to submit the concrete plan with phase wise target for replacement of defective / faulty meter in their area. In case of non-compliance Commission may initiate action under section 142 of the Act. DISCOM can have a provision in billing software of sending pop up message / signal indicating that the maximum duration/period allowed for assessed billing for particular consumer served with faulty / defective meter is over and they have to billed the consumer on the basis of accurate meter.

13. Standards of Performance 10/9/2024 13 Services Guaranteed Standards Compensation payable to affected consumers Total No. of Instances Occurred (Nos.) No. of Cases in which achievement was within prescribed limits (Nos.) Compensation paid to affected Consumers (Rs. Lakh) Complaints pending (Nos.) % achievement within prescribed limits Inspect and check correctness Within 7 days Rs 100 per week (or part thereof) of delay 1,80,721 1,80,721 100.00% Replace slow, creeping or stuck up meters Within 24 hours in urban areas and 72 hours in rural areas 31,412 31,412 100.00% Replace burnt meters if cause not attributed to consumer 7,412 7,412 100.00% Replace burnt meters in all other cases 46,525 46,525 100.00% Total complaints received (1) 2,66,070 Complaints received w.r.t total stopped / defective meters is around 15% only. This is very small as it may be inferred that either consumers are not complaining or consumers awareness in the matter is low. Total Stopped/defective meters (2) 17,57,628 % Complaints received(3=1/2) 15% Complaints received w.r.t total stopped/defective meters is around 15% only. This is

14. Arrears 10/9/2024 14

15. Arrears (>6 months & category wise break up) 10/9/2024 15 (62%) (24%) (24%) Rs. 128 Cr Rs. 173 Cr Rs. 158 Cr Rs. 2206 Cr Rs. 7072 Cr Rs. 5850 Cr Rs. 1809 Cr Rs. 1850 Cr