KVR Doraisamy Nisha Pai - ELK Asia Pacific Journals...the State Govt. and they can also project their system to be more efficient. Thus the estimates of the unmetered consumption and

ELK ASIA PACIFIC JOURNAL OF ELECTRONICS AND COMMUNICATION TECHNOLOGY

ISSN 2394-935X (Online); DOI: 10.16962/EAPJECT/issn. 2394-935X/2016; Volume 2 Issue 1 (2016)

www.elkjournals.com

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TRANSMISSION AND DISTRIBUTION LOSSES (POWER)

KVR Doraisamy Nisha Pai

INTRODUCTION

The official figures indicated for average

Transmission and Development (T&D)

losses with reference to the Indian

scenario is an enormous 23 percent of the

total electricity generated. On the other

hand, referring to model studies of some

states undertaken by independent

agencies like TERI, these T&D losses

amount to almost 50 percent of the

generated electricity. The T&D losses

are amounting to a huge number of 58%

has been estimated by SBI Capital

Markets in their latest study carried out

for DVB which contradicts the DVB

claims of 40- 50 % of total generated

power as T&D losses. The figures of

T&D losses directly impact the sales and

the purchase demands of power thus

influencing the electricity tariff rates

which is fixed by the utility and

moderated by the State Regulatory

Commissions.

COMPONENTS OF T&D LOSSES

Various commercial aspects and

technical factors in process of electricity

delivery are responsible for the loss of

energy. The inherent inefficiencies in the

conductors and the equipment which are

used in transmission, transformation,

sub-transmission and distribution of

power contribute to the dissipation of

energy and amount to the technical

losses in the T&D power loss. These

technical losses are intrinsic in any

system and cannot be reduced beyond a

certain level of optimism. These

technical losses can be further classified

according to the power transformation

and transmission System stages. This

classification yields Transmission

Losses (400kV/220kV/132kV/66kV),

Sub transmission losses (33kV /11kV)

and Distribution losses (11kV/0.4kv).

Apart from the technical losses, the

commercial losses amounted in the T&D

losses are a result of pilferage, meter

defects, human mistakes like meter

http://dx.doi.org/10.16962/EAPJSS/issn.2394-9392/2014

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reading errors and the estimation of

unmetered supply of energy.

LEVEL OF T& D LOSSES

Considering the officially declared

figures of T&D losses in India, a gradual

rise is seen starting from about 15

percent recorded up to the year 1966-67

to about 23 percent which is documented

in 1998-99. This uninterrupted

escalating trend in the T&D losses is

concerning and efforts should be aligned

to control it. The Electric Power

Research Institute (EPRI) based in the

USA has documented the order of the

losses in several elements of the T&D

system: (Refer Table 1) the loss figures

indicated above are not fixed and

contextually changing with pattern of

using electrical energy, load density,

intensity of load demand. Also it must be

noted that efficiency and configuration

of the transmission and distribution

system which is subjective to the

elements also tampers the loss figures

indicated above.

The prescription for total energy losses

in the range between 10-15% in the

Indian states is given by the study

‘Guidelines for Reduction of

Transmission and Distribution Losses’

published by CEA (July, 1991). The

enclosed Annexure-A having T&D

losses for various countries should be

compared with the Annexure-B which

indicates the former T&D losses of

Indian states. It is noted from a glimpse

of Annexure-A that the T&D losses are

contained in the 10% mark for most of

the developed countries.

REASONS FOR HIGH T&D

LOSSES

Studies all over the world establishes the

fact that the power losses can be

contained in a reasonably short period of

time and the internal rate of return on

investment in measures taken for loss

reduction is extraordinary. To curb these

technical and commercial T&D losses

first step is to have a clear idea about

their magnitude which can be amounted

by installing accurate energy accounting

system. This system is fundamentally an

energy management tool which

functions to distinguish various

components in the total energy

consumption. That means an account of

energy generation and energy

consumption at various levels like

technical consumption by system

elements as well as by consumers; is

maintained by this tool. Moreover, a

sense of accountability and efficiency in

the working of utilities is brought about

by such methods.

REASONS FOR ESCALATED

TECHNICAL LOSSES




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Major reasons yielding high technical

losses are amounted below:

Inadequacy in the budgetary investments

arranged in the field of transmission and

distribution systems, chiefly in the sub-

transmission and distribution categories.

The proposed and optimally desirable

investment ratio of generation and T&D

is ideally 1:1. But a practices in power

systems during the time period ranging

from 1956 -97 left it skewed to 1:0.45.

Thus, 65% low investment in the T&D

has led the distribution system to be

devoid of proportionate establishment

and growth resulting in the overloading

of the same. Unplanned growths of sub-

transmission and distribution system

with short sighted aims to extend the

power supply to new areas.

Large scale rural electrification through

long 11kV and LT lines.

Unnecessary multi stage transformations

of voltage.

Inappropriate load management yielding

excess or deficit in power.

Insufficient reactive compensation

reducing the efficiency of power

transmission.

Poor quality of equipment used by the

customers reducing the power factor and

overall efficiency of the power system.

REASONS FOR COMMERCIAL

LOSSES

In India; theft and pilferage are a

significant component in the high

transmission and distribution losses.

Theft / pilferage of energy is majorly

committed by non-consumers and

genuine consumers. The illegal or

unrecorded supply of power is used by

certain antisocial elements by attaching

conductors or tapping the bare

conductors of L.T. feeder or tampered

service wires. Whereas the bonfire

consumers deliberately bind to pilferage

tampering the meter boxes installed for

accounting their power consumption.

Following are some of the common

means for theft and pilferage.

Illegal tapings and extensions of loads.

Mechanical Meter Tampering to change

the meter readings

Terminating the meter recording by

remote control

Deliberate burning of meters causing

loss of property to the utility.

Altering the sequence of terminal wiring

to tamper the reading of the meters.

Power Connection Bypassing the meter

to manipulate the reading.

Altering the C.T. ratio and to

proportionately reduce the recording.

Human Errors in meter reading and

recording.




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Instrument errors including Faulty

calibration of meters resulting in wrong

readings

T&D LOSSES IN RESTRUCTURED

SEBS

Various states have undertaken power

sector reforms to restructure their SEBs

(State Electricity Boards). As a result,

the reforming states have suddenly

testified higher T&D losses after

carrying out system restructuring and

studying it in detail. For example, Orissa

once reported 23 percent loss which after

restructuring amounted to 51 percent.

AP reported its T&D to be about 25

percent before restructuring its power

sector, estimates it to be around 45

percent as a result of restructuring.

Similarly with Haryana and Rajasthan

the newer estimate is at 40 percent at 43

percent contrary to former account of 32

percent and 26 percent in that order.

REGULATORY CONCERNS

In the situations when there is deficit of

an actual estimate of the T&D losses, the

regulatory commissions cannot estimate

the revenue requirements appropriately

consumers may be forced to pay for the

utility inadequacies.

The determination of the justified cost

incurred by an entity is fundamental in

deciding and regulating tariff because

incurred cost directly indicates the

deficit revenue which is the basis of any

tariff design. Thus, it is the regulator’s

responsibility to ensure fair accounting

of the losses.

The regulator is a moderating agency

that reassure the utility efforts to reduce

losses simultaneously ensuring to curb

the factors hindering the utility’s

performance.

BARRIERS IN PRIVATE SECTOR

PARTICIPATION

The absence of genuine estimates of T&

D losses discourages private sector

participation in power distribution. This

is because a private company would not

indulge in a sector whose revenue

potential is unknown.

UNMETERED SUPPLY

Commercial losses are a function of

unmetered supply of power to

agricultural entities and floating

connections to small and domestic

consumers belonging to weaker sections

of the society.

In most Indian states, as a part of

politically motivated move, the

agricultural tariff is based on the unit

horsepower (H.P.) of the motors used by

the farmers in scheduled farms. Such

power loads are applied and sanctioned

for low load declarations and after the

commissioning of the connections, the




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consumers illegally keep on increasing

the connected loads thereby imposing

losses on the utilities.

The truthful approximation of unmetered

consumption in the agricultural sector is

a function of cropping pattern, ground

water level, seasonal variation, hours of

operation etc. The State Governments

(of almost all stares) in order to increase

the agricultural output, subsidize the

electric power supply for irrigation to the

farmers also in some States, deprived of

any charges. Thus, to benefit from this

schemes, most Electricity Boards supply

electrical energy to agriculture sector

and ask for entitlement to subsidy from

the State Govt. based on the energy

consumption. Also the energy meters

have been eliminated for agriculture

sector services by the electricity boards

and this nonexistence of energy meters

gives the free will to SEBs for falsifying

the values of average consumption in

Agricultural sector. In the absence of

energy meters, most of the SEBs resort

to fudging consumption figures to

include not only the under estimated

T&D Losses but also energy theft from

their system

The estimation of unmetered supply

affects the estimation of T&D losses

greatly, because estimation in the second

stage has amplification of the inherent

errors. Thus, an overestimated

unmetered agricultural consumption

yields a higher percentage of T&D loss

estimate. This tactic is deliberately used

by majority of the utilities to acquire a

higher amount of money as subsidy from

the State Govt. and they can also project

their system to be more efficient. Thus

the estimates of the unmetered

consumption and T&D loss figures are

implicitly related in both the ways.

Further the boards gets a chance to

ignore the incompetence of the T&D

systems by attributing all ills to the

agricultural supply and consequently

raising the tariff of all other non-

agricultural consumers. Most of the

methods being employed by SEBs for

estimating the unmetered energy

consumption are as follows

LOAD FACTOR BASED

ESTIMATION.

Feeder wise theoretical calculation of

losses based estimation.

Readings of meters installed at all the

Distribution Transformers located on a

feeder based estimation.

However, the accuracy of all the above

methods employed for estimation; is

questionable.

Measures for reducing technical losses




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SHORT TERM MEASURES

Optimizing the resource and usage

equation by strengthening the weak links

in the distribution system.

Checking the tapings and illegal

connections by reducing the length of LT

lines. This can be achieved by relocation

of distribution sub stations and/ or

installations of additional distribution

transformers (DTs)

Lowering the no load losses such as iron

or core transformers losses facilitated by

installation of lower capacity

distribution transformers at each

consumer premises instead of cluster

formation and substitution by more

efficient DTs.

Installation of shunt capacitors for

reactive compensation thereby

improvement of power factor and the

overall efficiency of power distribution.

LONG TERM MEASURES

Technical parameters like the conductor

size, line lengths etc. in the complete

primary and secondary distribution

system should be optimized. The

parameters like existing loads, operating

conditions, future load forecast etc.

should be holistically comprehended.

And detailed distribution system studies

should be executed considering with a

foresighted and futuristic approach.

The strengthening and improvement of

the distribution systems along with

associated transmission system in

various phases should be planned with

blackouts and shut downs practically

calculated. Also the budget should be

pragmatically allocated for the

implementation requirements of each

phase. The complete system

improvement schemes and plan along

with detailed investment program should

be formulated with an objective to meet

system requirements for first 5 years

period.

MEASURES FOR REDUCING

NON-TECHNICAL LOSSES

The idea, that service quality, customer

relationships, and overall service

satisfaction can minimize revenue

losses; was verified for utilities all

around the world by the studies

undertaken by International Utilities

Revenue Protection Association

(IURPA).

Pakistan also confirmed the same theory

in the case of WAPDA (Water & Power

Development Authority).The

widespread theft of electrical power has

in Pakistan contributed financial crisis

for WAPDA (Water & Power

Development Authority). The World

Bank and Asian Development Bank

which had supplied the bulk of




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WAPDA’s development loans wanted

WAPDA to act on power theft and T&D

Losses to recover its unpaid dues. But

WAPDA raised the power tariffs

burdening the customers which instead

of improving the financial circumstances

worsened them. There were increased

occurrence of theft and unpaid bills;

consequences of which were extreme

measures to limit power larceny. 35,000

troops were deployed by the Chairman

of the authority (a serving army officer)

to recognize and seize the culprits. The

result of it was commotion and distress

with more than 36 military courts trying

the cases and sentencing the culprits. The

exercise was fatiguing and futile.

Instead of the WAPDA approach the

following should be considered for

mitigating power thefts. These are

widely accepted throughout the world

for the same. Arrangement of vigilance

teams to check and prevent theft of

energy. Extreme penalties for the

culprits of meter seals tampering.

Energy auditing for district offices and

accountability of executive engineers

should be insisted upon. Installation of

tamper-proof meter boxes and numbered

seals. Testing, maintenance and

replacement for existing meters.

INITIATIVES REQUIRED

Keeping the above in view it becomes

essential to quickly assess the realistic T

&D losses in each of the states and take

speedy measures to cut the losses in an

organized manner by all the players in

power sector. The central or the state

governments should strategize periodic

budgets for financial aid to the utilities

for installations of meters on at least all

the distribution transformers. Energy

audits for the systems of all the big

industries as well as the utilities should

be mandatory and after the identification

of high loss its mitigation should be

planned. Schemes for incentive awards

and encouragement to utilities who are

able to reduce T&D losses beyond a set

mark. An arrangement of easy loans

from the banks for the utilities taking

remedial measures to reduce the T&D

losses. Awareness building among

consumers about high penalties on the

unauthorized use of electricity. A long

term (almost 15 years), realistic and

foresighted plan should be developed by

the utilities to meet the growing

electricity demands of the different

sectors of the state’s economy.

ISSUES FOR DISCUSSION

1. Status of metering and steps

required for early installation of the

same




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The proposed installation of meters

under the financial assistance provided

by the Central government for

installation should be surveyed and the

practicality and implement ability of the

same should be critically thought about.

2. Mitigating power theft

Electrical power theft is a nuisance and

it affects all the utilities in varying

degrees. This theft has impact on not

only the loss of revenue to the utility but

the power quality is compromised which

results in low voltage and/ or voltage

dips.

The amended Sections 39 and 39A of the

Indian Electricity Act 1910 pronounces

the theft of electrical energy and its

abetment as a cognizable offence with

the deterrent punishment of up to 3 years

of imprisonment. The application of this

law and its impact on theft is an

important issue to be discussed.

3. Implementation of energy audits

schemes

Energy Audits of the systems in big

industries and utilities should be

mandatory. Realistic assessment and

time bound action for discrepancies in

figures of total T&D Losses into

technical and non-technical losses

should be taken by utilities. The areas

incurring high revenue loss should be

determined and remedial measures to

reduce them should be initiated.

The chosen sample size impacts

significantly the genuine assessment of

T&D Loss of a utility which further

affects the tolerance limit of variation in

results. Thus, it is essential to determine

and limit the sample size for genuine and

quick approximations of losses.

4. Setting of bench marks for yearly

reduction of T&D losses (technical

and non-technical)

REFERENCES

Power Ministers Conference

February 2000. – Agenda Notes

Electric Power International – fall,

1999.

Guidelines for Energy Audit in

Power Systems, CEA, and New

Delhi May 1992

P. N Khare MSEB, Power Theft – A

Root Cause of T& D Losses

5. Mr. M.H.P. Rao ‘Power Sector

bogged down by T&D Losses’ in

Financial Ex-press, dated July 9 ,1999

(Refer Table 2, 3)




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LIST OF TABLES:

Table: 1

System element Power Losses (%)

Minimum Maximum

Step-up transformers & EHV transmission system 0.5 1.0

Transformation to intermediate voltage level,

transmission system & step down

to sub-transmission voltage level 1.5 3.0

Sub-transmission system & step-down to distribution

voltage level 2.0 4.5

Distribution lines and service connections 3.0 7.0

Total Losses 7.0 15.5




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Table 2

Transmission and Distribution Losses (Power) 9

Annexure A: Transmission and distribution loss

Country T&D losses Country T&D losses

percent percent

Japan 4.0 Switzerland 6.0

Denmark 4.0 Sweden 6.4

Germany 4.0 United States 7.0

Ghana 4.0 United Kingdom 7.0

Singapore 4.0 Taiwan 7.0

Guam 4.50a Italy 7.4

Macau 4.81a London 8.3

Korea 5.4 Malaysia 10.0

France 5.9 Thailand 10.3

Australia 6.0 Fiji 10.52a

Canada 6.0 Indonesia 12.0

China 6.0 Mexico 14.0

South Africa 6.0 Hong Kong 15.0




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Table 3

Transmission and Distribution Losses (Power) 10

State 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98a 1998/99b 1999/00c

Andhra Pradesh 20.3 19.2 19.1 18.9 18.9 33.1 32.5 31.9 31.1

Arunachal

Pradesh 28.2 34.9 31.6 31.0 36.0 32.6 31.0 31.1 31.5

Assam 22.7 21.0 20.8 24.9 26.2 26.0 30.1 23.0 30.0

Bihar 18.3 20.5 19.0 24.0 25.9 25.3 25.4 39.5 36.0

Daman and Diu 15.9 0 0 0 0 0 0 0 0

Goa 23.8 20.8 21.8 26.2 28.5 23.5 23.4 29.1 23.0

Gujarat 23.6 21.1 21.3 20.0 18.3 21.4 21.7 20.1 18.0

Haryana 26.8 25.4 25.5 28.5 31.4 32.8 33.4 29.6 29.5

Himachal

Pradesh 19.2 18.5 17.3 17.4 17.5 18.4 19.2 18.5 18.1

Jammu and

Kashmir 50.1 45.3 47.7 46.9 48.6 50.0 47.5 43.8 46.5

Karnataka 19.3 18.7 18.6 18.9 18.5 18.9 18.6 17 18.3

Kerala 22.5 21.0 20.2 20.1 20.1 21.4 17.9 17.5 17.0

Lakshadweep 17.4 0 0 0 0 0 0 0 0

Madhya Pradesh 25.8 22.2 20.2 20.1 19.5 20.6 19.7 17.8 18.6

Maharashtra 18.6 16.4 15.8 15.3 15.4 17.7 17.1 17.3 17.0

Manipur 24.4 22.5 22.5 22.0 21.5 23.0 21.8 19.7 20.0

Meghalaya 11.7 12.2 10.7 18.7 17.8 19.5 17.9 18.9 19.0

Mizoram 34.9 28.1 28.0 28.0 27.0 34.4 25.7 42.0 43.0

Nagaland 23.1 32.4 31.6 30.8 30.0 26.8 29.5 29.0 28.5

Orissa 25.3 23.5 23.4 23.8 46.9 50.4 46.0 42.0 36.0




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Punjab 21.8 18.7 18.5 18.3 18.2 18.9 17.8 17.1 17.7

Rajasthan 23.1 24.5 25.2 25.0 28.5 25.9 26.5 29.5 22.0

Sikkima 25.9 21.8 21.5 21.2 21.0 29.2 20.1 20.0 19.8

Tamil Nadu 18.4 17.5 17.3 16.9 17.0 17.2 16.8 16.6 16.5

Tripura 32.0 30.5 30.0 30.0 30.0 30.1 29.3 28.5 28.0

Uttar Pradesh 26.1 24.1 23.2 22.6 22.8 25.1 25.5 26.3 22.9

West Bengal 19.7 23.7 22.4 21.1 20.7 20.1 20.0 19.5 19.0

All-India

(utilities) 22.8 19.8 20.2 20.3 22.2 24.5 23.9 23.2 22.0

a provisional; b

revised ; c estimate


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KVR Doraisamy Nisha Pai - ELK Asia Pacific Journals...the State Govt. and they can also project their system to be more efficient. Thus the estimates of the unmetered consumption and