The Haryana Electricity Regulatory Commission (HERC) on Saturday said that distribution companies (discoms) had consistently incurred energy distribution losses over the past 11 years, despite their claims of having made huge capital investments to reduce them.
In its recent tariff order, the HERC said that the percentage of losses incurred by the Uttar Haryana Bijli Vitran Nigam from 2001-02 to 2012-13 had been the same during the last 11 years.
It added that losses incurred by the Dakshin Haryana Bijli Vitran Nigam had been reduced only by 7.32% in the last 11 years.
“This situation reflects adversely on the working of the companies,’’ the regulator said.”
HERC said that the cost of service had increased due to unreasonably high distribution losses. The commission added that consumers and other stakeholders had expressed concerns about high transmission and distribution losses.
"It would be extremely difficult for licensees to remain financially viable unless immediate and effective steps are taken to control the same," it said.
The commission pointed out that licensees had failed to get energy audits of feeders, which had incurred losses of over 50%, and take suitable measures to curtail the same.
"The commission views this lapse on the part of companies very seriously and directs them to bring down the loss level of such feeders to a reasonable level by March 31, 2015," the order said.