Summary
12th Edition of Integrated Rating of Discoms Unveiled by Union Minister R. K. Singh Union Minister R. K. Singh releases 12th Edition of Integrated Rating of Discoms, highlighting transparency and encouraging efficiency improvements in power sector. Efforts to reduce AT&C losses, increase billing efficiency, and address challenges like resource adequacy and consumer grievances emphasized. Top rankings achieved by utilities from Gujarat, Haryana, Karnataka, MP, and AP.
Union Minister R. K. Singh unveils ratings for DISCOMs, emphasizing transparency, efficiency improvements, and challenges addressed in power sector.
12th Edition of Integrated Rating of Discoms Unveiled by Union Minister R. K. Singh
Union Minister for Power and New & Renewable Energy Shri R. K. Singh released the 12th Edition of Integrated Rating of Discoms, offering insight into their performance and room for improvement.
Importance of Ratings for Public Transparency
- Shri R. K. Singh emphasized the significance of ratings for public awareness and transparency in governance, highlighting their role in encouraging efficiency and improvement among DISCOMs.
- Ratings serve as a reflection of the system’s efficiency, with many utilities demonstrating improved performance over time.
Efforts to Reduce AT&C Losses and Increase Efficiency
- The Minister noted a decline in AT&C losses, showcasing an overall improvement in efficiency.
- Initiatives like smart prepaid meters aim to enhance billing and collection efficiency, ultimately reducing losses to single digits.
Challenges and Solutions in the Power Sector
- Some states, despite their developmental status, show lower ratings for their DISCOMs, signifying critical challenges in the power sector.
- Efforts are underway to address challenges such as resource adequacy, long-term power supply agreements, and consumer grievance redressal.
Performance Rankings and Notable Achievements
- 14 out of 52 distribution companies secured an A+ rating, with utilities from Gujarat, Haryana, Karnataka, Madhya Pradesh, and Andhra Pradesh excelling.
- Adani Electricity Mumbai Ltd. topped the list, followed by Torrent Power Surat and Torrent Power Ahmedabad from Gujarat.
Insights from the 12th Edition
- The report highlights improvements in AT&C losses, billing efficiency, and late payment surcharge rules.
- Average power purchase cost increased due to factors like coal imports and higher exchange prices, impacting the ACS-ARR gap.
Rating Framework and Methodology
- Ratings are based on financial sustainability, performance excellence, and external environment, with specific parameters and disincentives considered.
- The framework has evolved over the years to reflect changes in the power sector and national priorities.
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Background and Evolution of the Integrated Rating Exercise
- Initiated in 2012, the Integrated Rating exercise evaluates the performance of power distribution utilities annually.
- The framework underwent significant changes during the 10th edition, focusing on capturing the true financial picture and best sectoral practices.
- The 12th Edition of Integrated Rating of Discoms sheds light on the power sector’s progress and challenges, offering insights for policymakers and stakeholders.
- Efforts to enhance efficiency and transparency remain paramount for sustainable growth in the power sector.
For more details and access to the rating reports, visit Urja Drishti.
FAQ:
- What is the Integrated Rating of Discoms?
- The Integrated Rating of Discoms is an annual exercise conducted by the Ministry of Power to evaluate the performance of power distribution utilities across India.
- What is the significance of these ratings?
- These ratings provide a transparent assessment of the efficiency and effectiveness of distribution utilities, encouraging them to improve their performance and service delivery.
- What are some key parameters considered in the ratings?
- Parameters such as AT&C (Aggregate Technical and Commercial) losses, billing efficiency, collection efficiency, and adherence to best sectoral practices are evaluated.
- What initiatives are being undertaken to address challenges in the power sector?
- Efforts include reducing AT&C losses, increasing billing efficiency, ensuring resource adequacy through long-term power purchase agreements, and establishing consumer grievance redressal forums.
- Which utilities have achieved top rankings in the latest edition?
- Utilities from states like Gujarat, Haryana, Karnataka, Madhya Pradesh, and Andhra Pradesh have achieved top rankings, reflecting their efficient performance.
- Where can one access the detailed rating reports?
- The detailed rating reports, including the 12th Edition of the Integrated Rating of Discoms, can be accessed on the official website of UrjaDrishti.
- How do these ratings contribute to the overall improvement of the power sector?
- By incentivizing efficiency and transparency, these ratings encourage distribution utilities to adopt best practices, ultimately leading to a more reliable and sustainable power sector.
- What is the role of the Ministry of Power in conducting these ratings?
- The Ministry of Power oversees the rating exercise and collaborates with agencies like the Power Finance Corporation to ensure its effectiveness and credibility.
The above article has been written with inputs from PIB – Source
Last Updated on: Wednesday, April 3, 2024 11:25 am by Admin | Published by: Pioneer Today Team on Wednesday, April 3, 2024 11:24 am | News Categories: India
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