Chandigarh,October 15,2019: Punjab State Power Corporation Limited (PSPCL) improved its last year’s ratings and is covered under a grade for its better power purchase management, high operational and financial performance capabilities. PSPCL is placed at the ninth position in the seventh integrated rating for state power distribution companies released by the Ministry of Power. PSPCL has improved from last year’s of 11th position to 9th position with “A” grade.
PSPCL has improved in cost coverage and power purchase cost which is lower than benchmark. However, In the case of PSPCL the key concerns is subsidy dependence on the state government remains high particularly towards agriculture consumers coupled with delay in receipt of subsidy. Further lower collection efficiency is impacting AT&C losses adversely.
A senior PSPCL official said that had the PSPCL received timely power subsidy the rating would have improved further. External factors which carry 15% weightier are beyond the scope of PSPCL.
The seventh rating of Ministry of Power assessed 41 power utilities of different states and out of these total 7 utilities gets A+ rating. Gujarat discoms retained its top performance in the integrated ratings with all four power distribution utilities of the State topped the integrated ratings of State discoms besides two from Karnataka and one from Uttarakhand. There were 9 utilities each in A and B+ grade, followed by 8 in B grade, five in C+ and three discoms in C grade.
Scores have been assigned on the basis of performance of state distribution utilities against various parameters. The operational and reform parameters carry weight age of 52%. The financial parameters carry weight age of 33%. External parameters relating to regulatory environment, State Govt. subsidy support, have been assigned weight age of 15%.