At over 11%, power distribution losses weigh Bescom down

Transmission and distribution (T&D) losses of Bescom have almost stagnated close to 11% for four years now, raising concerns over the management of power by the state’s largest electricity supply company.

The recent hike in power tariff has irked consumers who want escoms to focus on bringing down such losses instead of shifting the burden onto them.

Data accessed by DH shows that Bescom’s distribution loss has come down only marginally over the last two years — from 11.73% in 2020-21 to 11.23% in 2021-22. Though the exact loss for 2022-23 is yet to be calculated, according to sources, it’s said to be close to 11%.

While the Karnataka Electricity Regulatory Commission (KERC) approved the recent revision in tariff by citing an increase in power purchase and transportation cost, industrialists pointed out that losing an average of 11% annually causes a significant loss in revenue.

“Even with such advancement in technology, escoms have not been able to cut losses,” said Suresh N Sagar, honorary secretary of Polymer Manufacturers’ Association and a member of Machohalli Industrialists’ Association.

“If the authorities manage well, they can manage the financial repercussions of increasing power costs by cutting down on losses. This way, escoms can make profits without increasing the power tariff,” he said.

While a few senior Bescom officials admitted that the losses were considerably high, they added that a number of measures had been put in place to control them.

“T&D losses up to 5% are acceptable owing to technical aspects. However, the load in the Bescom division has increased drastically over the years. We have been working on upgrading the infrastructure to match the increasing load. In a few areas, the wires and conductors may not be up to the mark, leading to such losses,” a senior Bescom official said. The loss of energy to such an extent could lead to revenue losses that could run up to hundreds of crores.

Power theft

Apart from infrastructure flaws, power lost due to electricity theft is also considered a loss, the official said.

“The losses are calculated based on the difference between the input energy at the feeders and the total energy that is billed for. Illegal connections that draw power from the poles and electricity supply lines are not billed for and hence considered as loss,” the official explained. Faulty or manipulated meters also contribute to the losses, he added.

Bescom’s vigilance wing is also keeping a close eye on power thefts and has registered 4,730 cases against the offenders in 2021-22.

Down the drain

Financial year T&D losses
2019-20 12.09%
2020-21 11.73%
2021-22 11.23%