RK Singh Releases Rankings and 9th Integrated Rating of State Discoms

The Union Minister of Power, New and Renewable Energy, RK Singh has released the Rankings and 9th Integrated Ratings for State Power Distribution Utilities for the period FY 2019-20 covering 41 state Discoms spread across 22 states. For the first time, the Ranking of Discoms has been carried out.

July 16, 2021. By Manu Tayal

The Union Minister of Power, New and Renewable Energy, RK Singh has released the Rankings and 9th Integrated Ratings for State Power Distribution Utilities for the period FY 2019-20 covering 41 state Discoms spread across 22 states. For the first time, the Ranking of Discoms has been carried out.

During the occasion, Singh said that, the Indian power sector will beneļ¬t from a fair and accurate assessment of the true position of the distribution sector which in turn will help in assessing and improving its performance. This will also assist State Governments, lending institutions and other stakeholders to take important decisions.

The Minister also congratulated A+ & A category Discoms who have performed well and urged upon other utilities to perform better and improve their ratings next time.

RK Singh also congratulated Power Finance Corporation (PFC) on completing its 35 glorious years in the service of the Nation. He said that, PFC has become a leading NBFC and a key player in financing the Indian Power Sector. He further added that PFC will be an instrumental strategic partner in Government reform schemes for power sector such as Rs 3.03 lakh crore 'Reforms-based and Results-linked, Revamped Distribution Sector Scheme', Atmanirbhar Discom package, etc. He further added that PFC as a dedicated Financial Institution to Power Sector has the required expertise in funding the Power Sector. 

Singh further spoke about achieving the target of ‘One Nation-One Grid- One Frequency’ with the addition of Transmission Lines of 1.52 lakh cKm. Going beyond infrastructure creation and bridging supply side gaps, the Government has also focused on consumer empowerment.

He further added that the recently notified “Electricity (Rights of Consumers) Rules, 2020” is a step in this direction.  This major initiative will put consumer at the center-stage, and is an important step towards improving Ease of Living and Ease of Doing Business across the country.

The Integrated Rating exercise has been carried out on an annual basis since 2012 as per the methodology approved by Ministry of Power (MoP). The MoP has mandated PFC to co-ordinate with the utilities, rating agencies & MoP during the rating exercise.

Here’re the significant highlights of the report:

Rating of Discoms

  • All the four Discoms of Gujarat and one Discom of Haryana (i.e. DHBVNL) ranked among top 5 and are placed under category A+
  • 3 utilities have been placed in category A
  • 16 utilities have been placed in category B+/B 
  • 17 utilities come under categoryC+/C

Performance of Discoms

  • ACS-ARR Gap
  • Aggregate losses of Discoms have reduced from Rs 61,000 crore to less than Rs 38,000 crore.
  • Average ACS-ARR Gap reduced from 52 paise per unit to 32 paise per unit. 

Govt. Subsidy Support

  • Aggregate subsidy received is 94% of the aggregate subsidy booked for FY 2020 as compared to 88% in the previous year.
  • 25 Discoms received the entire subsidy booked for the year.
  • AT&C Losses
  • 20 Discoms have reduced their Aggregate Technical & Commercial (AT&C) losses.
  • Average AT&C losses of Discoms stand at 21.16%.
  • 9 utilities reported AT&C loss levels within 15%.
  • Billing Efficiency
  • 34 Discoms have shown an improvement in their Billing Efficiency.
  • Average Billing Efficiency improved from 83.8% to 85.4%.
  • 8 utilities have reported Billing Efficiency more than 90%.
  • Collection Efficiency
  • 14 Discoms have shown an improvement in their Collection Efficiency.
  • Average Collection Efficiency stands at around 92%.
  • 11 Discoms reported Collection Efficiency more than 97%.
  • Availability of Audited Accounts

35 Discoms have submitted audited annual accounts, while 6 Discoms have submitted provisional accounts.

  • Regulatory Environment

Tariff orders issued for 36 Discoms.

Meanwhile, from the 10th Rating Report onwards, the report will also cover Private Discoms and power departments.

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