Power Distribution Franchise Model to Cut AT&C Losses by Over 20% in Varanasi
High aggregate technical and commercial losses, distribution losses and electricity thefts in Varanasi district call for implementation of Power Distribution Franchise Model
With 4.8% share in the total global power generation capacity, India is the third largest producer of electricity in the world after China and the US. India’s per capita consumption of electricity stood at 957 kWh in 2013-14. Even after the considerable growth of power sector in India over the last decade, various regions in India still face severe power shortage as a result of increasing electricity demand from residential, commercial as well as industrial sectors.According to TechSci Research report “Varanasi Power Distribution Franchise Model, 2015”, Varanasi district is currently suffering from huge AT&C lossesin the range of 30-35%. Over the years, government of India has continuously been voicing intentions of implementing distribution franchise model in 200 cities based on the success of distribution franchisees in the cities of Maharashtra, Uttar Pradesh and Odisha. With AT&C losses of over 30% in 2014, the implementation of distribution franchise model in Varanasi offers a huge opportunity to improve the electricity scenario in the district.
Varanasi District comprises of two urban circle (EUDC I and EUDC II), and one rural circle (EDC III). As identified by PuVVNL, both urban circles comprise of three divisions each, withthe rural circle having two divisions. Electricity consumers in Varanasi district are segmented into domestic, industrial, commercial, and agricultural, out of which domestic consumers account for more than 55% of the district’s total electricity consumption. Presently, the leading players operating as power distribution franchisees in the country are Torrent Power, SPML Infra, Essel Utilities, Feedback Energy Distribution Company and CESC Limited.
“With the enactment of Electricity Act 2003, the power distribution sector is witnessing participation of private players. Privatization of power distribution sector and the implementation of distribution franchise model is expected to significantly bring down the AT&C losses, thereby providing quality power supply to Varanasi consumers in future.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Varanasi Power Distribution Franchise Model, 2015” has evaluated the potential of power distribution franchise model in Varanasi district and provides statistics and information on market structure, industry behaviour and trends. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in power distribution franchise market in Varanasi district.