The Kerala State Electricity Board(KSEB) has slipped to 25th in the tenth annual integrated rating and ranking of power distribution utilities released by the Union Power Ministry.
The KSEB has dropped to 25th spot with a 'C' grade after having been ranked 14th with B+ grade last year. The tenth annual ratings, which covered 71 State-run and private distribution companies (Discom) and 11 power departments, was released by the Union Ministry on August 6.
The top two ranks with A+ grade were secured by the State-run Dakshin Gujarat Vij Company Ltd. (DGVCL) and the Madhya Gujarat Vij Company Ltd. (MGVCL). State utility DNH Power Distribution Corporation Ltd of Dadra & Nagar Haveli bagged the third spot with A+ grade.
Private Discoms and State power departments were included in the ratings this time. Discoms were rated on a range of parameters under three broad categories; financial sustainability, performance excellence, and external environment (subsidies, loss takeover by the State government etc) during the 2021 financial year.
The KSEB's performance on all components of average cost of supply (ACS)-aggregate revenue realised (ARR), except cash adjusted revenue, showed a decline during the period, according to the report. The utility is performing well on power purchase costs, but not too well on operation and maintenance expenses and interest costs.
Distribution losses well below the State electricity regulator-approved figure, good billing efficiency (91.8%), and high collection efficiency (98.8%) were identified as among the strong points of the KSEB.
The Power Ministry noted that the latest ratings should be viewed against the backdrop of the COVID-19 pandemic which upset collections, power supply, and strained State finances in 2020 and 2021.
The ratings have been an annual exercise since 2012, but the methodology was modified in the tenth edition. According to the Power Ministry, it now places stronger emphasis on financial performance while assessing operational efficiencies and the external ecosystem of Discoms.
