Central Electricity Authority of India has given guidelines about how to calculate Aggregate Technical and Commercial (AT&C) Losses (AT&C). Guidelines in scanned PDF version are available on NIC website. Below is HTML version of it.
First three steps of calculations are clear and self explanatory. Transmission losses are clearly technical losses, which are considered as 'B' in the calculation. From step 3 onwards, instead of measuring distribution losses at different stages of supply chain, NIC (or whomsoever came up with the concept of AT&C) is adding following as 'losses'
This is happening because double entry bookkeeping masters (Chartered Accounts) are commercial managers. They are unable to model distribution losses as distribution losses are happening at different layers of supply chain -- cabling, distribution transformer, switch gear, control panels...They have taken simpler approach of mixing distribution losses into commercial losses.
Also, debtors and subsidy parameters are manipulative in nature.
| A | Input energy | Energy generated + energy purchased - auxiliary consumption - energy traded / interstate sale |
| B | Transmission Losses | |
| C | Net Input Energy | A - B |
| D | Energy Sold | Energy Sold to all categories of consumers excluding units of Energy Traded/Inter-State Sales. |
| E | Revenue from Sale of Energy | Revenue from Sale of Energy to all categories of consumers (including Subsidy Booked) but excluding Revenue from Energy Traded /Inter-State Sales. |
| F | Adjusted Revenue from Sale of Energy on Subsidy Received basis | Revenue from Sale of Energy ( same as E above) minus Subsidy Booked plus Subsidy Received against subsidy booked during the year |
| G | Opening Debtors for Sale of Energy | Opening debtors for sale of Energy as shown in Receivable Schedule (Without deducting provisions for doubtful debtors). Unbilled Revenue shall not be considered as Debtors |
| H | Closing Debtors for Sale of Energy | i) Closing debtors for Sale of Energy as shown in Receivable Schedule (Without deducting provisions for doubtful debts). Unbilled Revenue shall not be considered as Debtors. ii) Any amount written off during the year directly from(i) |
| I | Adjusted Closing Debtors for sale of Energy | H (i+ii) |
| J | Collection Efficiency | (F+G-I)/E*100 |
| K | Units Realized = Energy Sold*Collection efficiency | D*J/100 |
| L | Units Unrealized = Net Input Energy - Units Realized | C-K |
| M | AT&C Losses (%) = Units Unrealized / Net Input Energy * 100 | L/C *100 |
First three steps of calculations are clear and self explanatory. Transmission losses are clearly technical losses, which are considered as 'B' in the calculation. From step 3 onwards, instead of measuring distribution losses at different stages of supply chain, NIC (or whomsoever came up with the concept of AT&C) is adding following as 'losses'
- Difference between opening debtors and closing debtors
- Subsidy booked and subsidy received
This is happening because double entry bookkeeping masters (Chartered Accounts) are commercial managers. They are unable to model distribution losses as distribution losses are happening at different layers of supply chain -- cabling, distribution transformer, switch gear, control panels...They have taken simpler approach of mixing distribution losses into commercial losses.
Also, debtors and subsidy parameters are manipulative in nature.
Conclusion
- One has to report technical losses and commercial losses separately.
- One has to measure distribution losses at all levels (using smart metering??) for clear picture of leakages
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