Bescom records single-digit distribution losses two years in a row

Bescom is responsible for almost 50% of electricity distribution in Karnataka.
| Photo Credit: Murali Kumar K

The power utilities in Karnataka have been trying hard to reduce their distribution losses for many years. The Bangalore Electricity Supply Company (Bescom), which is responsible for almost 50% of the State’s distribution, incurred distribution losses of 9.13% in the financial year (FY) 2023–24.  

For quite a few years, the distribution losses of Bescom were around 11%, attracting a lot of flak towards the company by the consumers. In FY 2021–22, it was 11.63% while in the FY 2020–21, it was 11.99%. Interestingly, in FY 2022–23, the distribution loss went down to single digit (9.71%).  The trend continued in 2023–24 (9.13%).

Bescom attributes this dip to reduced power interruptions. “We have cut down on power interruptions. Our two projects of aerial bunched cables (ABC) and underground (UG) cables are almost 100% complete. This has helped us in increasing our reliability and, thereby, cut down on our distribution losses,” said a senior official from the Energy Audit Department of Bescom.  

KERC approved loss percentage 

The multiple year tariff order recently issued by the Karnataka Electricity Regulatory Commission (KERC), approved distribution losses of 9.65% for FY 2025 – 26, of 9.40% for FY 2026 – 27, and 9.15% for FY 2027 – 28. If the losses are less than this, it attracts incentives to the company while exceeding these targets will attract penalties.  

To reduce the loss further, KERC directed all the escoms to identify the high loss sub-divisions or divisions, and prioritise the capex specifically to reduce them. It further asked them to improve the reliability of the distribution system and improve voltage regulations.   

The commission added, “Furthermore, the commission has observed that energy audit reports of cities and towns, complete with detailed analysis, are not being submitted regularly. Escoms are required to conduct energy audits of identified cities and towns. Based on the audit results, initiate necessary actions to reduce distribution losses, and improve collection efficiency, aimed at achieving targeted loss levels of less than 15% in all towns.

“It has been noted that several towns and cities show abnormally higher energy losses. Escoms are directed to prioritise these areas and implement corrective measures to reduce losses. Escoms are directed to conduct the energy audit and submit compliance reports quarterly to the Commission, without fail.” 

Consumers still unhappy

While Bescom has managed to bring down the distribution losses, consumers are still not happy with the progress. 

“According to international standards, distribution losses should be less than 5%, especially since there are UG cables now. These reductions are otherwise of no use to consumers, as there is no accountability for the power that is lost,” said M. G. Prabhakar, former member of the KERC advisory committee.