DISCOMS from Gujarat and Haryana among top 5 performers
Mumbai, July 16 – Hon’ble Union Minister of Power, New and Renewable Energy, Shri R.K. Singh today released the “Ranking & Ninth Integrated Ratings for State-owned Power Distribution Utilities” on the occasion of PFC’s 36th Foundation Day in the presence of Shri Krishan Pal, Minister of State for Power along with Shri Alok Kumar, Secretary (Power), Shri R.S Dhillon, CMD PFC and other Senior Officers from Ministry of Power, PFC & REC.
The Minister appreciated that the Ninth Annual Integrated Rating exercise covering 41 State Power Distribution Utilities for the rating period FY 2019-20 has been completed with the enthusiastic participation of all the utilities. He congratulated all stakeholders, especially the state distribution utilities for their active role and support in successfully completing the Ninth Annual Integrated rating exercise despite the ongoing pandemic. He added that the Indian Power sector will benefit 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. He also congratulated A+ & A category DISCOMS who have performed well and urged upon other utilities to perform better & improve their ratings next time.
The Minister congratulated 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 `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. He appreciated PFC for being on a path of rapid development & growth. He wished that PFC’s legacy continues and inspires all the stakeholders in the power sector.
The Integrated Rating exercise is carried out on annual basis since 2012 as per the methodology approved by Ministry of Power (MoP). MoP has mandated Power Finance Corporation (PFC) to co-ordinate with the utilities, rating agencies & MoP during the rating exercise.
The Ninth Integrated Ratings have been carried out by ICRA Analytics Limited (IAL) & CARE Advisory Research & Training Limited (CART), the consulting arms of ICRA ratings and CARE respectively.
The event was virtually joined by Secretaries of State Governments and CMDs of various State Distribution Utilities.
Sd/-
(S. S. RAO)
Chief General Manager (PR)
Highghlights of “Ranking & 9th Annual Integrated Rating of DISCOMs & DISCOM Performance during F.Y. 19-20”
About the Report
- The elaborate annual rating exercise gives a fair and accurate assessment of the health of power distribution sector through analysis various Operational, Financial & Reform parameters
- The report covers rating of 41 State owned DISCOMs spread across 22 States
- The Ranking & 9th Integrated Rating of State Power Distribution Utilities have been carried out by ICRA Analytics Limited (IAL) & CARE Advisory Research & Training Limited (CART), the consulting arms of ICRA Ratings and CARE Ratings respectively, which is coordinated by Power Finance Corporation Ltd.
- For the 1st time the Ranking of DISCOMs has been carried out
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 category C+/C
Performance of DISCOMs
- ACS-ARR Gap
- Aggregate losses of DISCOMs have reduced from Rs. 61,000 Crs to less than Rs. 38,000 Crs
- 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
- Twenty-Five DISCOMs received the entire subsidy booked for the year
- AT&C Losses
- Twenty DISCOMs have reduced their Aggregate Technical & Commercial (AT&C) losses
- Average AT&C losses of DISCOMS stands at 21.16%
- Nine utilities reported AT&C loss levels within 15%
- Billing Efficiency
- Thirty-four DISCOMS have shown an improvement in their Billing Efficiency
- Average Billing Efficiency improved from 83.8% to 85.4%
- Eight utilities have reported Billing Efficiency more than 90%
- Collection Efficiency
- Fourteen DISCOMs have shown an improvement in their Collection Efficiency
- Average Collection Efficiency stands at around 92%
- Eleven DISCOMs reported Collection Efficiency more than 97%
- Availability of Audited Accounts
- Thirty five DISCOMs have submitted audited annual accounts, while six DISCOMs have submitted provisional accounts.
- Regulatory Environment
- Tariff orders issued for thirty-six DISCOMS
Going Forward
- 10th Rating Report onwards the report will cover Private DISCOMs and Power Departments also
- Comprehensive review of Rating Methodology to cover evolving sectoral aspects
- Consumer service parameters will be carved out into a separate report to have exclusive customer centric ratings
