Power ministry mandates energy accounting of DISCOMs to cut electricity losses

The power ministry today mandated electricity distribution companies to undertake energy accounting on a periodic basis. The notification stipulates quarterly energy accounting by DISCOMs, through a certified Energy Manager, within 60 days. There will also be an annual energy audit by an independent Accredited Energy Auditor. Both these reports will be published in the public domain.  

Energy accounting reports will provide detailed information about electricity consumption by different categories of consumers and the transmission and distribution losses in various areas. It will identify areas of high loses and theft, and enable corrective action. This measure will also enable fixation of responsibility on officers for losses and theft, a ministry statement said.

Key goals of periodic energy accounting are:

• Development of a comprehensive energy accounting system to quantify and determine actual losses in the power distribution system.
• Identify areas of leakage, theft, wastage, or inefficient use.
• Enable and ensure an independent 3rd party energy audit of the distribution system.
• To enable the distribution utilities to undertake targeted efficiency improvement activities to reduce losses.
• Providing a basis for prioritising energy capital investments and help budget more accurately to achieve maximum results.

The data will also enable DISCOMS to take appropriate measures for reducing electricity losses, it said. The DISCOMs will be able to plan for suitable infrastructure up-gradation as well as demand side management (DSM) efforts effectively. "This initiative will further contribute towards India's climate actions in meeting our Paris Agreement Goals," the Power Ministry, in a statement, said.

Energy accounting prescribes accounting of all energy inflows at various voltage levels in the distribution periphery of the network, including renewable energy generation and open access consumers, as well as energy consumption by the end consumers.

"Energy accounting on periodic basic, and subsequent annual energy audit, would help to identify areas of high loss and pilferage, and, thereafter, focused efforts to take corrective action," said the ministry. The regulations issued today are expected to provide a much-awaited broad framework for electricity distribution companies to carry out Annual Energy Audit and Quarterly Periodic Energy Accounting.

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