What is meant by Billing efficiency and Collection Efficiency? Give the equation, allowing calculation of AT&C loss from the two efficiency factors.

Billing Efficiency refers to the accuracy and effectiveness of the billing process in capturing the actual consumption of electricity by consumers. It measures the percentage of energy consumed by consumers that is accurately recorded and billed by the utility. The billing efficiency equation is:

[ \text{Billing Efficiency} = \frac{\text{Energy Billed}}{\text{Energy Consumed}} \times 100\% ]

Collection Efficiency refers to the effectiveness of the collection process in recovering revenue from billed consumers. It measures the percentage of billed revenue that is successfully collected by the utility. The collection efficiency equation is:

[ \text{Collection Efficiency} = \frac{\text{Revenue Collected}}{\text{Billed Revenue}} \times 100\% ]

Aggregate Technical and Commercial (AT&C) Loss is the total percentage of electricity loss incurred from the point of generation to the point of delivery to consumers. It encompasses both technical losses (energy dissipation during transmission and distribution) and commercial losses (resulting from theft, billing inaccuracies, and non-payment). AT&C loss can be calculated using billing and collection efficiency as follows:

[ \text{AT&C Loss} = 100\% – (\text{Billing Efficiency} \times \text{Collection Efficiency}) ]

This equation reflects the fact that the difference between 100% and the product of billing and collection efficiencies represents the percentage of energy and revenue lost due to technical and commercial factors combined. Monitoring and improving billing and collection efficiencies are crucial for utilities to reduce AT&C losses, enhance revenue realization, and ensure financial sustainability.