The Ministry of Power released the 12th Edition of Integrated Rating of Discoms on March 11, and it shows that Adani Electricity Mumbai has remained at the top of the list of the 55 power distribution firms (discoms) in India for the past two years.
Dakshin Gujarat Vij Company Limited (DGVCL) and Uttar Gujarat Vij Company Limited (UGVCL), the state power utilities of Gujarat, took fourth and fifth place, respectively.
A number of factors, including general governance, financial sustainability, performance excellence, and the external environment, contribute into determining the ranking.
Gujarat’s Torrent Power Ahmedabad was placed third, and Gujarat’s Torrent Power Surat came in second.
“The public need to know how the discoms are performing and what their efficiencies are. The rating exercise is an important step towards transparency in governance. Besides this, the ratings also aim at encouraging discoms and energy departments which have low efficiencies to improve, as has happened in the past. The ratings are a mirror to the system. A number of utilities have improved their ratings,” stated RK Singh, Union minister for power and new and renewable energy in the launch event.
“Our motive behind implementing smart prepaid meters is to increase billing efficiencies to 100 percent, which will also ensure that the AT&C losses of discoms come down to single-digit. We are persuading discoms to enter into long-term power purchase agreements (PPAs). This will bring down power purchase costs and moderate electricity rates,” Singh added.
The Late Payment Surcharge Rules, according to the report, decreased payables to transmission and generation providers. Both the days receivable and days payable were lowered to 119 days and 126 days, respectively. In FY23, state governments paid out 108% of the total amount scheduled for tariff subsidies. Additionally, a few governments provided subsidy grants of Rs. 44,000 crore during the year to offset the financial losses incurred by discoms.
Nine utilities from Gujarat, Haryana, Karnataka, Madhya Pradesh, and Andhra Pradesh have received ratings of either A+ or A out of the 42 state power utilities that have been rated. A+, A, B, or B- is the performance rating given to each of the 11 private discoms.Out of the 55 utilities that have been rated, 14 have an overall performance grade of A+, 4 have an A, 7 have a B, 13 have a B-, 11 have a C, and 6 have a C- rating. According to a statement from the Ministry, no utility has been given a D grade.
“However, one of the surprising things we have noticed is that some states which are regarded as developed or fast-developing have shown lower ratings for their discoms. This is critical. Unless and until our power sector is viable, we cannot grow, since then, we will not be able to buy power to distribute to our people, which would, in turn, result in loadshedding and de-industrialisation,” Singh concluded.
