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MSEDCL's power loss touches14.85%

More than 20% electricity revenue goes down the drain in Nanded, Jalgaon and Latur dominated by political heavyweights, a whopping 50% losses in Mumbra-Kausa belt, political patronage to power theft and meter tampering are being cited as major reasons

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Even as the Devendra Fadnavis government talks big about the power sector and claims to reduce power tariff, it has emerged that state-run discom's distribution losses touched 14.85% in 2015-16, 0.68 percentage point more than previous year.

This is the third consecutive year of increasing losses for the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL or Mahavitaran) after a steady decrease for over eight years, revealed statistics. In 2013-14, a loss of 14% was reported by the company.

The collection efficiency too has gone down by nearly 3% as compared to previous year, claimed sources. Higher losses and lower collection efficiency lead to higher tariff for consumers. Interestingly, private players Reliance Energy and Tata Power's distribution losses are around 9.5% and 3%, respectively.

Consistent political patronage to power theft using illegal connections, non-payment of bills, and tampering of meters are supposed to be the three most crucial reasons behind mounting losses.

Among the 16 zones in the state, Jalgaon (23%), Nanded (21.30%), Akola (19.5%), Latur (18.6%), Gondia (17.6%) and Aurangabad (17%) occupy the top five positions when it comes to revenue loss, as per the latest figures.

Even Bhandup zone, which mainly covers Bhandup, Mulund, Thane, Vashi and Nerul, also reported 14.7% loss in 2015-16.

"These zones are dominated by political heavyweights from all parties, who extend their wholehearted support to defaulters and power thieves," highly-placed sources at the MSEDCL claimed.

Pune region has the best record in the state with only 8.9% electricity getting lost during distribution.

The situation is so pathetic in some parts of the state — Osmanabad, Parbhani, Washim, Gadchiroli and Jalna — that the state loses 25-30% of electricity revenue to power thieves.

The company reported over 50% and 43% distribution losses, respectively, in Mumbra-Kausa and Malegaon areas that have a larger slum population. This is not only alarming, but also indicates gross failure on MSEDCL's part in curbing illegal connections.

MSEDCL officials claimed that their losses are high as they serve mainly in rural areas and don't have safer underground cables, unlike private discoms in Mumbai. "Even in urban areas, most of our consumers are in slums where power theft is more common. Technically, this much loss is inevitable during distribution. Besides, it is well within the limit prescribed by the MERC," claimed a top MSEDCL official.

Energy minister Chandrashekhar Bawankule remained unavailable for comment. "He is holidaying in Kashmir with the family," said a close aide of his.

Soon after coming to power, chief minister Devendra Fadnavis had taken stock of the power situation in Maharashtra and directed state-owned generation, transmission and distribution companies to maximise their efficiency and cut down on losses so that industries and commercial sector could be given relief.

Bawankule too had promised reduction in domestic tariff by Re1 by cutting down on losses. While industrial and commercial consumers were granted relief last year, domestic ones are still waiting.

MSEDCL has over 2.20 crore consumers across the state, including 4.38 lakh industrial customers (2%), who consume 44% of power in the state. There are 1.62 crore residential, 36.67 lakh agriculture and 5 lakh BPL consumers.

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