12th Integrated Rating of discoms

The Union Ministry of Power recently released the 12^th Annual Integrated Rating and Ranking of Power Distribution Utilities (DISCOMs).

About the report:

• It has been conducted annually since 2012 to evaluate their performance using 15 base rating metrics and 9 disincentives for a score out of 100.
• DISCOMs are graded (A+, A, B, B-, C, C-, or D) based on their integrated rating score and overriding conditions, focusing on financial sustainability, performance excellence, and external environment, with the methodology set by the Ministry of Power.

Key highlights of the report:

• AT&C losses improving to 15.4% in Fiscal Year 2023, aligning closer to the national goal of 12-15%, Billing Efficiency at 87.0%, and Collection Efficiency high at 97.3%.
• State governments have disbursed over 100% of tariff subsidy amounts, aiding financial losses of DISCOMs through subsidy grants, while the average power purchase cost rose by 71 paise/kWh due to an 8% increase in demand, costlier coal imports, and higher exchange prices, especially during summers.
• Improvements were attributed to the implementation of plans and schemes like online services, metering improvements, anti-theft measures, revenue collection campaigns, and complaint resolution portals.

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