CESC has managed to restrict aggregate financial losses in its three distribution franchisee circles of Rajasthan during the first half (April to September) of FY21. However, revenues from Rajasthan were also lower, year-on-year, during the period.
In an investor presentation, CESC reported a loss of Rs.32 crore in H1 of FY21 from its three distribution franchisee (DF) circles – Kota, Bharatpur and Bikaner – in Rajasthan. This performance was better than in H1 of FY20 when such losses stood at Rs.56 crore. However, revenues also dropped 3.4 per cent to Rs.840 crore in H1 of FY21 from Rs.897 crore in H1 of FY20.
The DF mandate for the Kota circle was handed over on September 1, 2016 and will be valid for twenty years. This is the biggest of CESC’s three circles in Rajasthan with an area of 176 sqkm and a consumer base of 2.59 lakh. Currently, the T&D loss in this circle is hovering around 20.4 per cent. The Bikaner circle (area: 155 sqkm, consumers: 1.78 lakh) has a T&D loss of 14.4 per cent. The smallest of the three is the Kota circle covering an area of 50 sqkm and 70,000 consumers. The losses of Kota are the lowest at 12.3 per cent.
Malegaon operations
In the newly acquired Malegaon DF circle in Maharashtra, CESC could achieve a collection efficiency of 99 per cent, though T&D losses in the circle are still in the region of around 50 per cent. From the time of taking over the circle on March 1, 2020, the energy billed has been 555 million kwh, as against input energy of 1099 million kwh. This has resulted in a loss of 49.6 per cent.
Spread over an area of 25 sqkm, the Malegaon DF area has around 1 lakh consumers with the majority being textile mills. The duration of the DF agreement is 20 years, and power procurement is done from the state distribution utility Maharashtra State Electricity Distribution Company Ltd (MSEDCL).
For Malegaon, CESC has outlined minimum capital expenditure of Rs.20 crore per year for the first five years of the DF concession period. In the remaining fifteen years (sixth to twentieth), the capex would be in the region of Rs.3 crore per year.
Loss reduction initiatives
Across its distribution franchisee areas in Rajasthan, CESC has initiated several measures to reduce distribution losses. These include replacement of defective energy meters, regular billing for consumers, accuracy testing of meters of high-end consumers, working with local authorities to curb unauthorized drawl of electricity, etc.
Distribution business
The distribution franchisee business of CESC is undertaken by the following subsidiaries:
- Kota Electricity Distribution Ltd (Kota, Rajasthan)
- Bharatpur Electricity Services Ltd (Bharatpur, Rajasthan)
- Bikaner Electricity Supply Ltd (Bikaner, Rajasthan)
- Malegaon Power Supply Ltd (Malegaon, Maharashtra)
It may be mentioned that CESC is also a distribution licensee catering to Kolkata (33 lakh consumers) and Noida (1 lakh consumers.)
Featured photograph shows a market area in Bikaner city, Rajasthan. Photo source: www.holidify.com
