The Damodar Valley Corporation (DVC) is contemplating functioning as a distribution company for low tension (LT) domestic consumers in its command area following a request from the Jharkhand government provided it has the leeway of adopting corrective measures in the existing distribution mechanism.
While the DVC has shown eagerness to take up the new job, it has rejected the distribution model of the Jharkhand State Electricity Board (JSEB) after identifying a large number of shortfalls that lead to very high transmission and distribution (T&D) losses.
DVC chairman S N Sen said the distribution infrastructure of the JSEB was worn out and taking up LT power supply to domestic consumers in its command area would be a loss-making proposition for the corporation. "T&D losses of the JSEB are as high as 36% whereas the Jharkhand State Electricity Regulatory Commission has allowed only 18% T&D losses as admissible while deciding on the tariff petition," Sen told TOI adding that the DVC was not ready to suffer losses of such huge quantum.
To introduce correction to the system, the DVC has proposed changes at two stages. It wants to introduce pre-paid cards for consumers using which power can be consumed as long as balance is left in the card.
For BPL families, the DVC has proposed the government to recharge their cards instead of transferring the onus on the distribution company so that BPL families can enjoy power facility to a value as provided by the government. It has also plans to bring HT connection to a locality through overhead wires to feed a power grid which in turn will supply LT power to the consumers through underground cables.
"The chances of hooking and theft will be considerably reduced in this model because once the power is converted to domestically usable LT supply, the cables will no longer remain over ground to be tampered with," Sen said.
The DVC has estimated capital investment of around Rs 3,000 crore for which it has asked for state help.