The Ministry of Power has released the thirteen annual integrated ratings and rankings report for the financial year (FY) 2024, which assessed the financial and operational performance of 52 power distribution companies (DISCOMs).

The evaluation was based on parameters such as Average Cost of Supply (ACS) – Average Realizable Revenue (ARR) gap, Aggregate Technical and Commercial (AT&C) loss, billing efficiency, collection efficiency, governance, subsidy realized, and adherence to tariff cycle timelines.

AT&C losses rose from 15.3% to 16.3% over the year, primarily due to a 1.2% decrease in collection efficiency. The ACS-ARR gap narrowed by ₹0.20 (~$0.0023)/kWh, dropping from ₹0.59 (~$0.0068)/kWh in FY23 to ₹0.39 (~$0.0045)/kWh in FY24, effectively reducing the absolute cash gap to ~₹580 billion (~$6.65 billion).

Subsidy realization declined to 97.4%, down 108.6% from the previous year.

Meanwhile, days receivable decreased from 118 days to 115 days. However, the number of days payable to generation and transmission companies rose from 130 days to 132 days.

The top ten DISCOMs ranked by the report are:

1. Adani Electricity Mumbai secured the highest position with an integrated score of 99.8, selling a net energy volume of 9,813 million units (MU). AEML demonstrated improvements across key metrics, with AT&C losses reducing from 6.48% in FY23 to 6.12% in FY24, an increase in billing efficiency from 93.73% to 94.13%, and an improvement in the ACS-ARR gap by ₹0.91 (~$0.010)/kWh. The company achieved a reduction in days receivable from 17 to 15 days and days payable from 38 to 37 days. Collection efficiency slightly declined from 99.78% to 99.73%

2. Dakshin Gujarat Vij Company achieved an integrated score of 97.5, with a net energy sale of 29,554 MU. The company excelled in reducing AT&C losses from 1.65% to 1.31%, alongside a rise in billing efficiency from 98.4% to 98.69%. The company enhanced its ACS-ARR gap by ₹0.60 (~$0.0069)/kWh and improved collection efficiency from 99.95% to 100%.

3. Noida Power Company secured the third position with an integrated score of 97.2 and net energy sales of 3,136 MU. NPCL reduced its AT&C losses from 8.36% in FY23 to 7.81% in FY24, with an increase in billing efficiency from 92.37% to 92.52%. However, its ACS-ARR gap slightly deteriorated by ₹0.21 (~$0.0024)/kWh. The company’s collection efficiency improved from 99.21% to 99.64% over the financial year. Days receivables decreased from 15 to 14 days, and days payable declined from 45 to 37 days, demonstrating better liquidity management.

4. Madhya Gujarat Vij Company followed with an integrated score of 95.6 and net energy sales of 12,957 MU. The company significantly reduced AT&C losses from 9.19% to 6.9% and improved billing efficiency from 91.63% to 93.33%. The ACS-ARR gap saw an improvement of ₹0.52 (~$0.0060)/kWh. Days receivables declined from 19 to 17, while days payable rose from 3 to 7. Collection efficiency also improved from 99.11% to 99.75%.

5. Uttar Gujarat Vij Company secured a ranking with an integrated score of 93.0 and net energy sales of 28,498 MU. The company made notable progress in reducing AT&C losses from 9.35% to 8.32%, though billing efficiency decreased from 92.4% to 91.94%. The ACS-ARR gap improved by ₹0.47 (~$0.0054)/kWh, while collection efficiency increased significantly from 98.11% to 99.71%. Days receivables and days payable remained steady at 12 days and 2 days, respectively, indicating a stable financial structure.

6. Uttar Haryana Bijli Vitran Nigam secured an integrated score of 92.8, with net energy sales of 22,301 MW. The company showed improvements in AT&C losses, which reduced from 10.32% to 9.15%, and increased billing efficiency from 89.68% to 90.85%. The ACS-ARR gap improved by ₹0.04 (~$0.00046)/kWh. However, days receivable increased significantly from 4 days in FY23 to 42 days in FY24, while days payable decreased from 60 to 37 days.

7. TP Central Odisha Distribution achieved an integrated score of 91.8, with net energy sales of 8,853 MU. The company managed to reduce AT&C losses from 22.64% to 21.65% and saw an increase in billing efficiency from 77.36% to 78.35%. It also improved its ACS-ARR gap by ₹0.06 (~$0.00069)/kWh and reduced days receivable from 33 to 22 days. However, days payable increased from 53 to 55 days. Collection efficiency remained 100%.

8. TP Western Odisha Distribution secured an integrated score of 91.5, selling a net energy volume of 10,644 MU. The company reduced AT&C losses from 20.26% to 17.9% and improved billing efficiency from 81.65% to 83.47%. Despite these positive developments, the company’s ACS-ARR gap widened by ₹0.91 (~$0.010)/kWh. Days receivable improved from 34 to 28 days, and days payable decreased from 60 to 52 days. Collection efficiency rose from 97.66% to 98.36%.

9. TP Northern Odisha Distribution earned an integrated score of 90.9, with net energy sales of 6,017 MU. The company successfully reduced AT&C losses from 17.25%to 14.61% and improved billing efficiency from 83.62% to 85.39%. However, the ACS-ARR gap deteriorated slightly by ₹0.06 (~$0.00069)/kWh. On the financial front, days receivables decreased from 27 to 17 days, while days payable increased from 57 to 63. Collection efficiency improved from 98.96% to 100%.

10. Paschim Gujarat Vij Company rounded off the top ten with an integrated score of 89.9, selling 37,181 MU of net energy. The company reduced AT&C losses from 18.41% to 15.84%, while billing efficiency improved from 82.61% to 86.26%. The ACS-ARR gap also showed an improvement of ₹0.56 (~$0.0064)/kWh. However, days receivables slightly increased from 22 to 23 days, and collection efficiency declined from 98.76% to 97.57%.

Adani Electricity Mumbai, Torrent Power Surat, and Torrent Power Ahmedabad were ranked the top three DISCOMs in the previous integrated ratings and rankings report.

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