Adani Electricity Ltd secures the highest position in Power Utility Ratings

Adani Electricity Mumbai Ltd, Torrent Power Surat, and Torrent Power Ahmadabad have secured the top positions in the power ministry's comprehensive rating of electricity distribution companies, or discoms, for the fiscal year 2023.

Dakshin Gujarat Vij Co. Ltd and Uttar Pradesh Vij Co. Ltd are two of the remaining discoms in the top five. These particular companies are part of the 14 discoms that have been rated A+ by the ministry.

In the latest assessment conducted by the power ministry, a total of 55 utilities were rated.

Among them, four utilities were awarded an A rating, seven received a B rating, 13 received a B-, 11 received a C rating, and six were rated C-. Notably, no utility received the lowest rating of D. 

The Union minister for power and new and renewable energy, R.K. Singh, unveiled the 12th edition of the Integrated Rating of Discoms on Monday. Tata Power Delhi Distribution Ltd was granted an A grade, whereas the BSES discoms were rated B-.

R.K Singh quoted, “The billing efficiency has gone up and the collection efficiency was already high. Our motive behind implementing smart prepaid meters is to increase these efficiencies to 100%, which will also ensure that the AT&C losses of discoms come down to single-digit."

The power minister highlighted the surge in electricity prices, attributing it to the failure of several discoms to secure long-term additional resources for electricity supply. Instead, these discoms relied on costly short-term power purchases. Additionally, the minister emphasized that electricity demand has experienced a steady growth rate of 9% in the past two to three years.

Mint reported on March 2nd that distribution companies were rushing to secure temporary electricity sources before the summer season and the upcoming general election.

Singh also added, “We are persuading the discoms to enter into long-term (power purchase agreements) for at least 85% of their electricity requirement," Singh said. “We have laid down resource adequacy rules, which stipulate that discoms have to tie up power to meet the needs of the areas they serve. We have also laid down rules which specify penalties for gratuitous load shedding."