New Delhi: From battling crippling power theft and financial losses to emerging as a national benchmark in distribution efficiency, Delhi’s power sector has undergone a significant shift over the past two decades, with aggregate technical and commercial (AT&C) losses coming down from over 52% to nearly 6%.
In comparison, the national average AT&C loss stood at a little over 15% in FY 2024-25.AT&C loss is energy lost during distribution like heat in wires, transformer losses and commercial losses like theft, faulty meters or unpaid bills.The turnaround has its roots in power sector reforms undertaken in 2002-03. At the time, the state-run Delhi Vidyut Board (DVB) was grappling with severe financial distress, massive AT&C losses and frequent outages.
On July 1, 2002, govt initiated a major restructuring exercise, unbundling DVB into six entities and privatising distribution. BSES and Tata Power took over distribution operations with a mandate to reduce losses.At the time of privatisation, Delhi’s AT&C losses stood at over 52%. In certain pockets of east and central Delhi, they were even higher, at nearly 63%. Areas such as Ghonda in Yamuna Vihar, Old Seelampur and parts of Krishna Nagar were among the worst affected, plagued by widespread electricity theft, weak infrastructure and faulty metering systems, said a senior official.
The initial phase of reforms focused on addressing these structural deficiencies. Senior officials said discoms and govt invested in upgrading ageing infrastructure, replacing old lines and transformers, and strengthening the distribution network. Mechanical meters were phased out and replaced with static meters to ensure accurate recording of consumption. Billing systems were streamlined and processes for new connections and grievance redressal were simplified.As outages reduced and supply stabilised, consumer confidence improved, encouraging a shift from illegal connections to authorised usage. This helped discoms curb commercial losses significantly, the official said.Enforcement measures were strengthened alongside infrastructure upgrades. Inspection drives were intensified in high-loss areas, often with support from police and, for a period, the Central Industrial Security Force (CISF).
“Help from resident welfare associations (RWAs) was sought too,” he said. The setting up of special electricity courts enabled faster prosecution of theft cases, sending a strong signal against organised power theft.As the system stabilised, the approach became more targeted and technology-driven, said the official. Discoms began using IT systems and data analytics, which was still new in this segment, to identify high-loss pockets and detect irregular consumption patterns.
Tools such as energy auditing, feeder-level monitoring and real-time tracking improved visibility across the network.Another official said advanced technologies, including artificial intelligence (AI) and supervisory control and data acquisition (SCADA) systems, enhanced operational efficiency by enabling real-time monitoring, faster fault detection and improved load management. Smart metering and digital platforms further boosted data accuracy.A combination of technical and commercial interventions helped in the reduction in losses. Improved metering, billing and collection efficiency, targeted inspections and surveillance, and sustained consumer awareness campaigns all contributed to the gains.However, challenges persist. Discom teams continue to encounter resistance in certain areas, particularly in non-regularised colonies and JJ clusters where access to network infrastructure is easier.
Instances of meter tampering, illegal connections and even manhandling of field staff have been reported.Some pockets in south and west Delhi, including Khyala, parts of Najafgarh and the Shaheen Bagh-Jamia Nagar belt, continue to report relatively higher losses. Officials also point to emerging issues, such as illegal charging of e-rickshaws through unauthorised connections, which can cause losses up to 15-20 MW, add stress to the network and contribute to revenue leakage.“Achieving near-record low losses in a complex, high-demand urban environment like Delhi shows what sustained effort can deliver, when infrastructure is strengthened, technology brings visibility, inspections ensure discipline, and consumer trust is built over time guided by professional management and tech-driven operational excellence,” a senior BSES official said.
