The Punjab State Power Corporation Limited (PSPCL) and the Haryana power utilities have improved their ranking in the sixth integrated rating for state power distribution companies that have been issued by the Union Ministry of Power.
Punjab has been placed at the 11th position rising two slots from 13th the previous year and is yet to regain A+ grade which it held for two consecutive years 2014 and 2015. In 2016 was at the fifth slop and slipped to 13 in 2017.
In the case of Haryana, there has been a marked improvement from 22nd and 24th to 9th and 13th Positions (B to B+ grade). Earlier these power utilities had been in C grade in a list of 41 state power utilities across the country. The previous year, their number was at 28th and 31st and was placed in the C+ category.
For the sixth year in a row, the four state power utilities of Gujarat along with Uttarakhand Power Corporation topped the annual rankings. At the same time, four out of five power distribution companies of Uttar Pradesh (UP) have not moved out of the lowest grade as per the report. All the three discoms of Rajasthan are in the B category due to high power purchase costs and low bill collection efficiency.
The PSPCL performed well in the key area of lowering the aggregate technical and commercial (AT&C) losses while it floundered in revenue collection because of its absolute dependence on the state government for the release of subsidy being given in lieu of free power to agriculture and delay in receipt of same. Besides, it also lost points due on account of high employees cost. However, the utility consolidated its standing with the timely revision of power tariffs.
In case of Haryana’s Uttar Haryana Bijli Vitran Nigam (UHBVN)and Dakshin Haryana Bijli Vitran Nigam (DHBVN), the key concerns were high aggregate technical and commercial (AT&C) losses which were calculated at 32% for UHBVN and 29.09% for DHBVN. Besides, low billing efficiency, high power purchase cost at Rs. 4.76 per unit and high employees cost pushed the two power utilities down on the ranking. The strength of the power utility was the timely collection of subsidy amount and reduction in its debt liabilities.
Out of 41 state power utilities, there are five utilities with A+ grade, two with A grade 13 with B+ grade 11 with B grade, two with C+ grade and 8 with C grade.