Meghalaya Energy Corporation Limited (MeECL) continues to hog the limelight, all for the wrong reasons.
Its subsidiary, the Meghalaya Power Distribution Corporation Limited (MePDCL), has performed badly in the 9th Integrated Ratings for State Power Distribution Utilities for the rating period of financial year 2019-20.
The report of the integrated ratings was released by Union Minister of Power, New and Renewable Energy, R K Singh in New Delhi on July 16.
MePDCL secured rank 36 among the 41 state power distribution companies (discoms) in the country, as per this rating report. The Integrated Rating exercise is carried out as per the methodology approved by the Ministry of Power.
According to the ratings, MePDCL got ‘C’ grade which means the power distribution utility scored between 0 and 20. This implies that MePDCL has “very low operational and financial performance capability”.
The top four power distribution utilities are from Gujarat. They are Uttar Gujarat Vij Company Limited, Madhya Gujarat Vij Company Limited, Dakshin Gujarat Vij Company Limited and Paschim Gujarat Vij Company Limited.
Among the north-eastern states, Assam Power Distribution Company Limited was ranked 32, Manipur State Power Distribution Company Limited at 38 and Tripura State Electricity Corporation Limited at rank 39.
According to the rating report, the key strength of MePDCL was adoption of MYT with timely filing of tariff petition and issuance of tariff order.
The key concerns for MePDCL as pointed out in the report are high Aggregate Technical & Commercial (AT&C) losses at 34.16 per cent in Financial Year (FY) 2020 (Previous Year: 35.22 per cent), low billing efficiency of 70.12 per cent in FY 2020 (Previous Year: 64.78 per cent) and low cost coverage of 0.66x in FY 2020 (Previous Year: 0.85x).
Besides, the report mentioned about absence of MePDCL audited accounts for FY 2020, non-issuance of true-up order, and high receivable days running close to nine months.
The report also recommended reduction in AT&C loss level by focusing more on circles which have high AT&C losses. It also said that billing efficiency of MePDCL should be improved through various administrative and technical measures.
Further, the report recommended that audit of accounts by MePDCL should be finalised in a time bound manner. It also recommended improvement in cost coverage, timely issuance of true-up order, and reduction in receivables.
MePDCL has begun segregated commercial operations of power distribution as an independent entity from April 1, 2012 onwards.
Previously, Meghalaya Energy Corporation Limited (MeECL) was the sole electricity utility in Meghalaya responsible for generation, transmission and distribution of electricity in the State.
