Author(s): Dr. Asit Ranjan Mohanty, Dr. Suresh Kumar Patra
In India, the Transmission & Distribution loss (T&D loss) and aggregate technical & commercial loss (AT&C loss) are still very high. The reform measures envisaged since 2002 through privatization mode l in India in the distribution sector is yet to be crystallized. In India, Odisha being the first state to kick start the privatization model in 1996 is the worst performer regarding very low billing and collection efficiency. As a result, the AT&C loss is one of the highest in India. This paper empirically establishes that AT&C loss Granger causes revenue realization per unit (RPU). It is also confirmed that lower AT&C loss will raise the RPU. Higher billing and collection efficiency have a positive effect on RPU, though; billing efficiency has more positive impact on RPU as compared to collection efficiency. The empirical evidence suggests that tariff hike for the consumers have a negative correlation with RPU and positive correlation with AT&C loss.