Read the following passage and answer the question given below: The Power…

2023

Read the following passage and answer the question given below:

The Power Finance Corporation has reported that the aggregate technical and commercial (AT and C) losses of discoms have gone up from 20.7 percent in 2019-20 to 22.3 percent in 2020-21. The AT & C estimate gives us an idea of the losses a distribution company (discom) faces in its line of business. In layman's terms, if a discom has received 100 units of power, the AT & C figure will tell us how many units are not recovered in terms of revenue. So, a figure of 25 per cent would mean that for every 100 units of power fed into the discom, 25 units are not recovered. Consequently, the discom has to operate with a recovery of only 75 units. Broadly, the losses in the system comprise technical losses and commercial losses, the latter largely implying theft. Some technical losses are inevitable in a distribution system but these can vary a lot across discoms (roughly between 4 to 12 per cent) depending on the technology adopted, the condition of the distribution infrastructure, etc. Commercial losses are due to meters not being read, faulty meters, meters being manipulated or bypassed, etc. The Indian distribution system has always faced high AT & C losses (in excess of 30 per cent in the early 2000s), which drains the discoms financially and makes them economically unviable.

A discom reports AT & C losses of 20%. If the discom received 50000 units of power, it was able to recover revenue for

Answer: A. 40000 unitsConceptWhen a percentage represents a loss from a total, the retained or recovered share is the complement: recovered percentage = 100% − loss percentage. The…

  1. A.

    40000 units

  2. B.

    20000 units

  3. C.

    30000 units

  4. D.

    10000 units

Show answer & explanation

Correct answer: A

Concept

When a percentage represents a loss from a total, the retained or recovered share is the complement: recovered percentage = 100% − loss percentage. The recovered quantity equals total quantity × recovered percentage / 100.

Application

  1. The loss rate is 20%, so the recovered rate is 100% − 20% = 80%.

  2. Recovered units = 50,000 × 80/100.

  3. Recovered units = 40,000.

Cross-check

The unrecovered amount is 20% of 50,000 = 10,000 units. Subtracting it from 50,000 gives 40,000 units, confirming the calculation.

Result

The discom recovered revenue for 40,000 units.

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