GOVERNMENT OF INDIA

MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.1116
ANSWERED ON 08.02.2024

ELECTRICITY DISTRIBUTION COMPANIES

1116. SHRI V.K. SREEKANDAN:

Will the Minister of POWER

be pleased to state:

(a) whether it is a fact that many electricity distribution companies have

achieved the prestigious A+ rating in the latest consumer service rating of
Discoms report and if so, the details thereof;

(b) whether it is also a fact that there has been a substantial reduction in
aggregate technical and commercial losses which were 27 per cent earlier and
now have been brought down to 15 per cent and if so, the details thereof;

(c) whether it is also true that 12 per cent reduction in the losses of
distribution companies, significantly minimized the overall deficit from
Rs. 125,000 crore to Rs. 50,000 crore; and

(d) if so, the details thereof?

ANSWER

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a): A financially sound and operationally strong power sector is vital for
achieving the Government of India’s mandate of enabling ease of doing business
and ease of living. Electricity consumers are the most significant stakeholders
in the power industry. In its commitment to enhance the electricity services to
consumers, Ministry of Power has introduced various initiatives. Electricity
(Rights of Consumer) Rules, 2020 have been promulgated which aims to
“empower” consumers with rights and aims to prescribe the minimum standards
of service which the DISCOMs are expected to maintain and mainly includes the
right to reliable and quality power supply, the right to transparent billing and
tariff information, the right to timely and effective grievance redressal, and the
right to compensation to be paid by DISCOM for not meeting the standards of
performance.
 As the power sector seeks to achieve greater consumer satisfaction and
reliability, it is imperative for DISCOMs to identify critical areas, key consumer
services and meet minimum standards to strengthen their overall performance.
Consumer Service rating of DISCOMs (CSRD) was launched by Hon’ble Power
Minister in 2022. It helped DISCOMs to self-evaluate their performance and also
compare it with their peer DISCOMs and national averages. The exercise delves
into key parameters of consumer services viz. operational reliability; connection
services; metering, billing & collection services and fault rectification &
grievance redressal.

As per Consumer Service Rating of Discoms (CSRD) Report FY 2022-23,

there has been improvement in the number of DISCOMs securing better grading
for the services delivered by them to the consumers. While for the year 2022,
none of the DISCOMs were in A+ category, for the year 2023, 4 DISCOMs have
secured grade of A+ and 8 DISCOMs secured category of A the details of which
are placed at Annexure-I.

(b) to (d): Government of India has been implementing various performance

linked and result oriented schemes with the objective to have a financially
secure, viable and sustainable power sector (distribution segment in particular).
These initiatives have been designed to tackle financial and operational issues
to bring in desired financial discipline in DISCOMs and State Governments.
Details of steps taken are:

(i) Rules to ensure timely payment for subsidy declared by State

Government.

(ii) Ensuring that the tariffs are up to date.

(iii) Ensuring timely Energy Accounting and Energy Audit.

(iv) Ensuring that the GENCOs are paid on time.

(v) Revised Prudential Norms providing that a loss making DISCOMs will not
be able to draw loans from PFC/ REC or funds under any Power Sector
Scheme of GoI unless they put in place measures for loss reduction.

(vi) Additional borrowing space of 0.5% of GSDP if the DISCOM implements

loss reduction measures.

(vii) Under DDUGJY, IPDS and SAUBHAGYA infrastructure works worth Rs.
1.85 lakh Cr were executed.

(viii) Further, the Government of India has launched Revamped Distribution

Sector Scheme (RDSS) with the objective of improving the quality and
reliability of power supply to consumers through a financially sustainable
and operationally efficient Distribution Sector. The Scheme has an outlay
of Rs. 3,03,758 crore and a Gross Budgetary Support of Rs. 97,631 crore
from Government of India over a period of five years from 2021-22 to FY
2025-26.
 Fund admissibility to States and DISCOMs will be conditional on their
taking steps to improve their operational and financial efficiencies.

As a result of the concerted efforts of the Ministry of Power, the State

Governments and Distribution companies to implement the reforms measures
and adoption of best practices, Aggregate Technical and Commercial (AT&C)
Losses have reduced from 25.72% in FY 2014-15 to 15.40% (Provisional) in FY
2022-23. Reduction in AT&C losses improves the finances of the utilities, which
will enable them to better maintain the system and buy power as per
requirements, thus benefitting the consumers.Further, the reduction in AT&C
losses have resulted in reduction in the Gap between Average Cost of Supply
(ACS) and Average Realizable Revenue (ARR). The ACS-ARR Gap has declined
from Rs. 0.78/kWh in FY2013-14 to Rs. 0.45/kWh in FY2022-23. Thus, financial
health of the DISCOMs is improving. State wise details are attached as
Annexure-II.

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 ANNEXURE-I

ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.

1116 ANSWERED IN THE LOK SABHA ON 08.02.2024
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Sl. State DISCOM Name Grades

No.
1 Delhi BSES Rajdhani Power Limited (BRPL) A+
2 Delhi BSES Yamuna Power Limited (BYPL) A+
3 Delhi Tata Power Delhi Distribution Limited (TPDDL) A+
4 Uttar Pradesh Noida Power Company Limited (NPCL) A+
Andhra Pradesh Central Power Distribution
5 Andhra Pradesh A
Company Limited (APCPDCL)
Andhra Pradesh Eastern Power Distribution
6 Andhra Pradesh A
Company Limited (APEPDCL)
Andhra Pradesh Southern Power Distribution
7 Andhra Pradesh A
Company Limited (APSPDCL)
8 Maharashtra Adani Electricity Mumbai Limited (AEML) A
Manipur State Power Distribution Company
9 Manipur A
Limited (MSPDCL)
Tamil Nadu Generation and Distribution
10 Tamil Nadu A
Corporation Limited (TANGEDCO)
Telangana State Northern Power Distribution
11 Telangana A
Company Limited (TSNPDCL)
Telangana State Southern Power Distribution
12 Telangana A
Company Limited (TSSPDCL)

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 ANNEXURE-II

ANNEXURE REFERRED IN REPLY TO PARTS (b) TO (d) OF UNSTARRED

QUESTION NO. 1116 ANSWERED IN THE LOK SABHA ON 08.02.2024
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AT&C Loss (%)
2014-15 2022-23
State Sector 25.78 15.81
Andaman & Nicobar Islands - -
Andhra Pradesh 10.55 8.57
Arunachal Pradesh 67.83 57.59
Assam 25.84 16.22
Bihar 43.99 25.01
Chhattisgarh 27.84 16.14
Goa 13.31 11.85
Gujarat 16.06 10.65
Haryana 32.52 12.01
Himachal Pradesh 16.84 10.59
Jammu & Kashmir (JKPDD) 61.27 *
Jharkhand 47.85 30.28
Karnataka 18.71 13.91
Kerala 17.64 7.05
Ladakh - 30.33
Madhya Pradesh 30.88 20.55
Maharashtra (MSEDCL & BEST) 19.25 18.58
Manipur 48.30 13.82
Meghalaya 40.00 23.97
Mizoram 33.51 26.27
Nagaland 78.48 45.81
Puducherry 13.34 17.49
Punjab 17.20 11.26
Rajasthan 29.28 15.90
Sikkim 42.37 36.69
Tamil Nadu 24.74 10.31
Telangana 13.23 18.65
Tripura 36.23 28.15
Uttar Pradesh 46.32 22.33
Uttarakhand 18.82 15.32
West Bengal 35.35 17.32
Others (NMDC & TCED) - 10.28
Private Sector 24.66 10.95
Dadra & Nagar Haveli and Daman & Diu (DNHDDPDCL) - 3.58
Delhi 12.90 7.12
Maharashtra (AEML & TPML) - 6.48
Odisha 38.30 21.85
Uttar Pradesh (NPCL) - 8.36
West Bengal (CESC & IPCL) - 8.15
Gujarat (TP Ahmedabad and Surat) - 4.02
Grand Total 25.72 15.40
 ACS-ARR Gap
(Rs./kWh)
2013-14 2022-23
State Sector 0.83 0.50
Andaman & Nicobar Islands
Andhra Pradesh 0.18 (0.37)
Arunachal Pradesh 6.59 0.00
Assam 1.00 0.62
Bihar 0.24 0.00
Chandigarh (3.59)
Chhattisgarh 0.28 0.26
Dadra & Nagar Haveli and Daman
& Diu
Goa 0.01 (0.14)
Gujarat (0.02) (0.02)
Haryana 0.75 (0.15)
Himachal Pradesh 0.13 0.86
Jammu & Kashmir 2.66
Jharkhand 3.39 2.45
Karnataka 0.09 0.32
Kerala (0.05) 0.34
Ladakh 2.18
Lakshadweep
Madhya Pradesh 1.25 (0.20)
Maharashtra 0.12 1.24
Manipur 3.01 1.30
Meghalaya 1.56 0.67
Mizoram 4.00 1.71
Nagaland 3.03 (0.32)
Puducherry (0.18) 0.39
Punjab (0.05) 0.20
Rajasthan 2.63 0.20
Sikkim (0.39) (0.68)
Tamil Nadu 1.81 0.89
Telangana 0.00 1.40
Tripura 0.78 0.60
Uttar Pradesh 2.16 1.19
Uttarakhand (0.27) 0.72
West Bengal (0.01) 0.32
Others (NMDC & TCED) 0.85
Private Sector (0.02) (0.19)
Dadra & Nagar Haveli and Daman
& Diu (DNHDDPDCL) (0.14)
Delhi (0.13) (0.04)
Maharashtra (AEML & TPML) (0.04)
Odisha 0.15 (0.25)
Uttar Pradesh (NPCL) (0.79)
West Bengal (CESC & IPCL) (0.18)
Gujarat (TP Ahmedabad and Surat) (0.50)
Grand Total 0.78 0.45

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