Power Distribution Outlook in India – 2017


Power Distribution Outlook in India – 2017

With power distribution reforms gained momentum soon after the application of EA 2003 (where it was believed to be coined in mid 90’s) , Indian power distribution utilities came along way since then. With, introduction of reforms and multiple cognitive steps undoubtedly the power distribution sector stands improved by leaps from the erstwhile levels. Having said that, it indeed still represents the weakest link of the power generation, transmission and distribution chain. With, India having most of the discoms run as state authorities the pedigree for operational efficiencies and achievement of targeted revenue remains a seldom site. Barring Gujarat and few discoms of southern states the degree of AT&C loss levels decline over the past decade remains elusive. For sure, states like Rajasthan , Madhya Pradesh and Maharashtra have depicted remarkable improvement but still owing to the large area of operations and the consumer handled thereof consistently tests the revenue cycle for the utilities.

With India’s generation portfolio turning gradually to renewable preferred one , the existence of very business case for efficient operational and financial performance remains to be the biggest challenge addressable. Honouring the power purchase agreement based upon long term may evolve as the biggest risk for the discoms owing to the falling tariff observed in renewable portfolio and gaining parity with thermal sources. In this regard the pace of network capacity addition track and the billing & metering efficiency track and holistic approach to uncover the other key operations and finances for the discoms for each state with an imperative of outlook assessment was long felt industry need.

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