Adani Electricity Mumbai has emerged as the top-performing power distribution company (discom) in India, according to the 12th Edition of Integrated Rating of Discoms released by the Union Power Ministry. The evaluation assessed the performance of 55 electricity distribution utilities, with 12 utilities achieving the highest ranking of A+.
In the ranking, Torrent Power Surat secured the second position, followed by Torrent Power Ahmedabad at the third position. Gujarat's state power utilities Dakshin Gujarat Vij Company Limited (DGVCL) and Uttar Gujarat Vij Company Limited (UGVCL) claimed the fourth and fifth positions, respectively.
Among the 42 state-run power utilities that underwent evaluation, nine from Gujarat, Haryana, Karnataka, Madhya Pradesh, and Andhra Pradesh received a rating of either A+ or A.
Speaking at the release event held at Shram Shakti Bhawan, Union Power Minister R.K. Singh applauded the Discoms for their overall improvement in performance. He emphasized the significance of ratings in informing the public and driving continuous improvement.
Minister Singh noted positive trends in the power sector, highlighting a reduction in Aggregate Technical and Commercial (AT&C) losses and the downward trajectory of these losses. Billing efficiency increased to 87.0%, and collection efficiency remained high at 97.3%.
The Minister also discussed the implementation of smart prepaid meters to further enhance efficiency and reduce AT&C losses to single-digit figures. He commended states that have shown improvement and expressed surprise at some developed or fast-developing states receiving lower ratings for their Discoms.
Addressing the issue of rising power prices, Minister Singh pointed out that inadequate long-term power supply arrangements have made many discoms dependent on costlier short-term power purchases. He emphasized the importance of entering into long-term Power Purchase Agreements (PPAs) for at least 85% of electricity requirements. The Minister also highlighted rules against gratuitous load-shedding and the establishment of consumer grievance redressal forums.
Key findings from the 12th Edition of the Integrated Rating of Discoms include improvements in AT&C losses to 15.4% in FY23, billing efficiency to 87.0%, and collection efficiency remaining high at 97.3%. Late Payment Surcharge Rules contributed to a reduction in payables to generation and transmission companies. The average power purchase cost increased by 71 paise/kWh during FY23 due to a growth in power demand, expensive coal imports, and higher exchange prices, particularly during summers.
The Minister also highlighted that state governments disbursed 108% of amounts booked for tariff subsidies during FY23, and some states supported discoms through subsidy grants, totaling Rs 44,000 crores. However, the ACS-ARR gap, a cash-adjusted gap per unit of energy, increased to 55 paise/kWh in FY23 due to the purchase cost not being fully passed on to consumers.