The Fitch group research agency analyzed the performance of 19 discoms using data for two years – 2015-16 and 2016-17 — and judged the discoms on key financial and operational metrics in a report released recently
New Delhi: Power distribution companies in Gujarat, Uttarakhand and Andhra Pradesh are among the top performers while discoms in Telangana, Haryana, and Hubli in Karnataka are severely lacking on key parameters, according to the latest study on the financial health of discoms by India Ratings.
The Fitch group research agency analyzed the performance of 19 discoms using data for two years – 2015-16 and 2016-17 — and judged the discoms on key financial and operational metrics in a report released recently. The performance indicators included power purchase cost, leverage, profitability, working capital, and operational efficiency.
The report did not cover some of the largest discoms in the country including those in Uttar Pradesh, Bihar and Punjab.
Four Gujarat discoms — Dakshin Gujarat Vij Company Ltd (DGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), and Uttar Gujarat Vij Company Ltd (UGVCL) topped the list while Jharkhand Bijli Vitran Nigam Ltd (JBVNL) was the worst performer.
All the discoms in Gujarat namely UGVCL, MGVCL, DGVCL and PGVCL showed a significant improvement in AT&C loss levels in FY 2017. “Higher tariff realization in FY17 compared to previous years led to improved surplus over the cost of supply. Dwindling dependence on subsidy accompanied by low borrowings and a consistently high collection efficiency has resulted in increased liquidity and profitability. Further, cost-reflective tariffs and a stable regulatory regime underpin the cash flow robustness of these discoms,” India Ratings analyst B Ashwin said.
The study found three firms had power purchase cost exceeding Rs 5 per Kilowatt Hour (kWh) — DGVCL with Rs 5.54 per kWh, Southern Power Distribution Company of Telangana Limited (TSSPDCL) with Rs 5.52 per kWh and Northern Power Distribution Company of Telangana Limited (TSNPDCL) with Rs 5.15 per kWh. Uttarakhand Power Corporation Limited (UPCL) had the lowest power purchase cost at Rs 3.57 per kWh, closely followed by PGVCL’s Rs 3.65 per kWh.
Data also showed there were five companies with Aggregate Technical & Commercial (AT&C) losses of over 25 per cent. Jharkhand Bijli Vitran Nigam Limited (JBVNL) topped the list with 34.7 per cent, highest among the discoms. The other four discoms were Jaipur Vidyut Vitran Nigam Limited (JVVNL) with 29.8 per cent, Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) with 26.2 per cent, Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) with 26.1 per cent and Ajmer Vidyut Vitran Nigam Limited (AVVN) with 25.2 per cent AT&C losses. The best performer was Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) with mere 7.7 per cent losses.
Also, three discoms were found to have the gap of more than Re 1 between the Average Cost of Supply (ACS) and Average Revenue Realized (ARR). This includes Southern Power Distribution Company of Telangana Limited (TSSPDCL) at Rs 1.44 per Kwh, Northern Power Distribution Company of Telangana Limited (TSNPDCL) at Rs 1.02 per Kwh and Jharkhand Bijli Vitran Nigam Limited (JBVNL) at Rs 1.43 per Kwh. The ACS-ARR gap was the lowest for Madhya Gujarat Vij Company Ltd (MGVCL) at Rs 0.10 per Kwh followed by Rs 0.07 per Kwh for DGVCL.
Five discoms had payment receivable days — referring to maximum number of days for receiving pending payment for power supplied – exceeding five months or 150 days. This includes Jharkhand Bijli Vitran Nigam Limited (JBVNL) with 250 days followed by Hubli Electricity Supply Company Limited (HESCOM) with 227 days, Maharashtra State Electricity Distribution Company Limited (MSEDCL) with 181 days, Chamundeshwari Electricity Supply Corp Ltd with 179 days and Bangalore Electricity Supply Company Limited (BESCOM) with 163 days.
On payable days – referring to a maximum number of days of delayed payments for power purchase — Jharkhand Bijli Vitran Nigam Limited (JBVNL) was the worst performer followed by Gulbarga Electricity Supply Company Limited (GESCOM). Three companies had the lowest payable days among the 19 discoms — DGVCL, PGVCL and UGVCL.
News Source: ET Energyworld