The Hindu Business Line : Plan panel asks Transco to share success formula

THE Planning Commission has reportedly asked the Transmission Corporation of Andhra Pradesh Limited (APTransco) to share its success story in the areas of reduction of transmission losses, improved quality of supply and revenues.

The Corporation could record Rs 807 crore more revenue this financial year over last year's figure due to better financial and operational management, according to Ms Rachel Chatterjee, Chairman and Managing Director of Transco.

In an open letter to the staff of Transco and distribution companies, she said prudent planning helped the utility in not raising the tariff for about 1.65 crore electricity consumers in the State.

"The major factors for the increased revenue is due to reduction of energy pilferage, transmission and distribution (T&D) losses, increased industrial sales, better grid management and reduction in establishment and interest costs," she said.

As a result, the utilities had ensured reliable power to all categories of consumers and stipulated hours of supply to the agricultural sector. "Not even a single acre of crop was allowed to wither anywhere in the State due to lack of power," she said.

These measures also helped the utilities in reducing the tariff for industrial consumers, while maintaining the existing tariff for other categories of consumers.

The utilities could achieve this fighting against odds such as increased cost of power due to dwindling water levels, higher cost of coal and the need to buy power to meet agricultural demand.

These factors had resulted in an additional burden of Rs 690 crore on the utilities, she informed.

Encouraged by the performance in 2004-05, the power utilities had set a savings target of Rs 375 crore for 2005-06. "Of this, Rs 250 crore would be saved by way of improved metered sales and reduction of T&D losses.

The T&D losses would be brought down from 23.6 per cent in 2004-05 to 21.38 per cent in 2005-06," she said.

Ms Chatterjee said that the utilities in the State, for the first time, ensured full payment to all generators for their bills in 2004-05.

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