Rajasthan's High Power Transmission Losses Impose Heavy Financial Burden
In the financial year 2023-24, Rajasthan reported intra-state transmission losses of 4.33%, a figure that significantly outpaces comparable states and places it among the worst-performing states in India for power efficiency. This high loss rate has resulted in a substantial financial strain on consumers, highlighting critical issues in the state's energy infrastructure.
Comparative Analysis with Other States
When compared to other states, Rajasthan's performance is notably poor. For instance, Madhya Pradesh recorded losses of about 2.6%, while Andhra Pradesh reported around 2.75%. Even larger states such as Tamil Nadu and Gujarat managed to keep their losses within the 3.7% to 3.9% range. This disparity underscores Rajasthan's inefficiencies in power transmission, which have far-reaching economic implications.
Financial Impact on Consumers
The excess losses in Rajasthan, measured against a benchmark of 3%, forced the state's distribution companies to procure an additional 1,743 million units of electricity in a single year. According to Anshuman Gothwal of the Centre for Energy, Environment and People, this translated into a financial burden of approximately Rs 587 crore at the prevailing variable cost of power for that year. "Although transmission and distribution losses of discoms in Rajasthan are frequently discussed and dominate mainstream discourse, intra-state transmission losses receive comparatively less attention," Gothwal stated, emphasizing the overlooked nature of this issue.
Sustained Upward Trend and Regulatory Response
As reported in the latest True-Up Petition for FY 2024-25, Rajasthan is the only major state showing a sustained upward trend in intra-state transmission losses over the past five years. In response, the Rajasthan Electricity Regulatory Commission (RERC) directed the Rajasthan Rajya Vidyut Prasaran Nigam (RVPN) to investigate the causes of these high losses. The commission instructed RVPN to adopt AI-driven and advanced technologies while studying global best practices to address the problem.
Lack of Concrete Action Plans
However, RVPN has not submitted any concrete study or action plan for identifying and reducing these losses. "RVPN did not submit any concrete study or action plan for identifying and reducing these losses, stating only that it is making efforts to minimise them," added Gothwal. While RVPN cited factors such as changes in agricultural supply time blocks, as well as the state's unique energy requirements, topography, and population density, it failed to explain the reasons for the increase in losses over the years or provide a clear strategy to mitigate them.
Ongoing Regulatory Considerations
RVPN's petition for approval of the True-Up for FY 2024-25 and determination of Aggregate Revenue Requirement (ARR) and tariff for FY 2026-27 is currently under consideration by the regulatory commission. Officials indicate that this process will be crucial in addressing the persistent issue of high transmission losses and their financial repercussions for consumers in Rajasthan.
