Power discoms trip again in annual integrated rating

LUCKNOW: Tall claims of reforms notwithstanding, the performance of power distribution companies in Uttar Pradesh is going from bad to worse with their inefficiency weighing heavy on consumers.

All the five discoms in the state figure in the bottom of the list in operational and financial capabilities yet again in the Fifth Annual Integrated Rating by the union power ministry. Some of them have fared even worse as compared to last year’s ratings.

Lucknow, Varanasi and Agra discoms have received C grade each – the poorest rating – indicating “very low operational and financial performance capability”. Of the 41 state-owned discoms rated by the ministry, only five have got the C grade scoring merely 0-20 marks out the aggregate of 100 and of these, three come from UP alone.

The three discoms were found to have gained in aggregate transmission and commercial (AT&C) losses in 2016 vis-à-vis 2015, besides recording deterioration in some other areas like public interface. Agra discom’s rating has come down from C+ in 2016 to C in 2017.The KESCo has shown no improvement and has again got C+ grade indicating “low operational and financial performance capability” while Meerut has slipped down from B+ (indicating moderate operational and financial performance capability) last year to C+ this year.

The neighbouring Uttarakhand Power Corporation Ltd is the only discom apart from four discoms of Gujarat to have got the A+ grade which is the highest rating indicating marks as high as 80-100 indicating “very high operational and financial performance capability”.

Six discoms scoring 65-80 marks have got ‘A’ grade indicating “high operational and financial performance capability” while eight discoms scoring 50-65 marks have received the B+ rating indicating “moderate operational and financial performance capability”. Five discoms, including two in UP, have scored only 20-35 marks getting the C+ grade. “Formulated in 2012, the objective of the rating methodology is to serve as a powerful diagnostic tool to enable a focused approach by the state distribution utilities in taking corrective action and achieve sustainability and efficiency in operations,” an official said.

According to the report released during a conference a few days ago in New Delhi, scores have been assigned on the basis of performance of state distribution utilities against various parameters broadly classified under operational and reform parameters, external parameters and financial parameters. The evaluation of certain parameters covers current levels of performance as well as relative improvement from year to year. The operational and reform parameters viz. AT&C losses, efficiency of power purchase cost, customer interface etc., carry weightage of 47%. Financial parameters viz. cost coverage ratio, payables, receivables, timely submission of audited accounts etc., carry weightage of 33%. External parameters relating to regulatory environment, state government subsidy support etc., have been assigned 20% weightage.

“The report card of UP’s discoms is highly disappointing,” UP Rajya Vidyut Upbhokta Parishad president Avadhesh Kumar Verma said.

“This is a reflection on the UP Power Corporation Ltd’s top management that has been in place for years together,” he said.