The Business Bytes
Bhubaneswar, November 2, 2024 (TBB Bureau): In a significant achievement for Tata Power, the company recorded reduced distribution losses in its Odisha power distribution business during the first half (H1) of the current financial year (FY25). The reduction in Aggregate Technical and Commercial (AT&C) losses, a critical measure of operational efficiency, highlights Tata Power’s successful efforts to streamline power distribution in Odisha.
Tata Power operates in Odisha through four joint ventures with the Odisha government, managing the power distribution across distinct geographical zones. These ventures include TP Central Odisha Distribution Ltd (TPCODL), TP Southern Odisha Distribution Ltd (TPSODL), TP Western Odisha Distribution Ltd (TPWODL), and TP Northern Odisha Distribution Ltd (TPNODL), with Tata Power holding a majority 51 per cent stake in each entity. Together, these discoms serve an expansive population of 4.15 crore residents across 1.54 lakh sq km, with a customer base of approximately 9.48 million.
During the first half of FY25, two of these discoms, TPCODL and TPSODL, reported a reduction in AT&C losses compared to the same period in FY24. TPWODL maintained its AT&C loss level, while TPNODL experienced an increase. Despite these mixed results across individual discoms, the overall AT&C losses for Tata Power’s Odisha operations, weighted by the volume of electricity purchased, declined to 22.6 per cent in H1FY25 from 23.9 per cent in H1FY24, reflecting an encouraging trend in overall operational efficiency.
The aggregate electricity purchased by Tata Power’s four discoms rose by 3.9 per cent, reaching 19,540 Million Units (MU) in H1FY25 compared to 18,806 MU in H1FY24. Notably, electricity sales increased by a higher rate of 5.2 per cent during the same period, which resulted in a significant reduction in technical losses – from 19.6 per cent in H1FY24 to 18.5 per cent in H1FY25. Technical losses represent the gap between electricity purchased and sold and can indicate how efficiently power is delivered from source to consumer. The decline in these losses signifies Tata Power’s improved infrastructure and operational management, reducing wastage and enhancing service reliability.
Tata Power’s commitment to modernizing Odisha’s power distribution infrastructure is evident through its ongoing deployment of smart meters and automation initiatives. By the end of September 2024, Tata Power had installed approximately 8.34 lakh smart meters across the four discoms, with TPWODL accounting for the largest share at 3.33 lakh smart meters, around 40% of the total installed. These smart meters offer consumers enhanced control over their electricity usage, reduce the need for manual readings, and contribute to efficient loss management.
This apart, Tata Power has converted over 33 lakh conventional meters to digital meters and automated 753 substations across its Odisha discoms, facilitating real-time monitoring and streamlined management of the distribution network. These efforts reflect Tata Power’s focus on digital transformation as a means to improve efficiency and ensure uninterrupted service for its customers.
Tata Power’s investment and improvements in Odisha’s distribution network align with its commitment to providing efficient, reliable, and sustainable energy to its customers. By reducing distribution losses and upgrading its technological infrastructure, Tata Power not only bolsters its position as a leading power distributor in Odisha but also contributes to a more sustainable and resilient energy landscape in the state.
