Preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that the aggregate technical and commercial (AT&C) losses of discoms have declined significantly to around 17 per cent in 2021-22 from around 22 per cent in 2020-21.
The reduction in AT&C losses has resulted in reduction in the gap between average cost of supply (ACS) and average realisable revenue (ARR). The ACS-ARR gap (on subsidy received basis, excluding regulatory income and UDAY grant) has declined from Re 0.69 per kWh in 2020-21 to Re 0.22 per kWh in 2021-22. The decline of 5 per cent in AT&C losses and Re 0.47 in the ACS-ARR Gap in one year is the result of a number of initiatives taken by the Ministry of Power.