Question

Q. Which of the following factors are causing distress in the power sector?

Select the correct answer using the codes given below:

• A. 1, 3, 4 and 5 only
• B. 2, 3 and 4 only
• C. 1, 2, 4 and 5 only
• D. All of the above

Answer 1

The correct option is A 1, 3, 4 and 5 only

Explantation:

• All other points except 2 are correct. Discoms continuously have a higher average cost of supply than the average revenue realized. Due to this, they remain in losses and thus fail to make timely payments to the gencos and transmission companies.
• The present level of AT&C losses is 23% which is way higher than the accepted levels of the 15% conceived under the UDAY scheme.
• The Plant load factor in India in March 2021 was just around 63%. This shows that one-third of our generating capacity is sitting idle and thus causing stress in the sector.
• High levels of cross-subsidization cause higher costs of power for the commercial sector and promotes power theft.
• The poor capacity of transmission infrastructure causes higher losses during transmission and also inadequate uptake of power.