Andhra Pradesh DISCOMs notch improvement in national power utility rankings

Amaravati, Jan 24 (PTI) Andhra Pradesh's power distribution utilities have recorded a marked improvement in national performance rankings, with two state-run DISCOMs climbing two notches in the latest government assessment, reflecting gains in efficiency and financial discipline.

According to the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities released by Power Finance Corporation (PFC) under the Ministry of Power, Central Power Distribution Company of Andhra Pradesh Ltd (APCPDCL) and Southern Power Distribution Company of Andhra Pradesh Ltd (APSPDCL) were upgraded from 'C' to 'B' grade, reversing a period of weaker rankings in earlier years.

The annual nationwide exercise evaluates power distribution companies on parameters including financial sustainability, operational efficiency and governance. In previous editions of the rankings, Andhra Pradesh's DISCOMs had been placed in the lower performance bands, reflecting challenges related to losses, collections and financial stress.

The latest upgrade signals a turnaround in the state's distribution sector.

The report highlights strong improvements in key operational indicators over the past year. Collection efficiency for Andhra Pradesh DISCOMs rose to 99.26 per cent, compared with 94.91 per cent in the previous assessment, while Aggregate Technical and Commercial (AT&C) losses declined sharply to 7.9 per cent from around 12 per cent.

With AT&C losses now in single digits, Andhra Pradesh has moved closer to the performance levels of better-ranked distribution utilities nationally, narrowing the gap with top-performing states that typically report losses in the 6-8 per cent range. Collection efficiency of over 99 per cent also places the state among the stronger performers on revenue realisation metrics.

At the national level, the rankings continue to show wide divergence in DISCOM performance, with several utilities remaining in the 'C' and 'D' categories due to high losses and weak financials. Against this backdrop, the improvement by Andhra Pradesh's DISCOMs stand out as one of the notable upgrades in the latest assessment.

Officials attributed the improved performance to targeted reforms undertaken by the state government, including tighter billing and collection systems, enhanced monitoring, and targeted loss-reduction initiatives. The gains have also been supported by alignment with national reform programmes such as the Revamped Distribution Sector Scheme (RDSS), which links financial assistance to measurable improvements in efficiency.

The state government said it remains focused on sustaining the momentum, strengthening the financial health of its distribution utilities and improving service quality. Further reforms are expected as Andhra Pradesh aims to move its DISCOMs into higher performance categories in future national rankings while ensuring a reliable and affordable power supply. PTI MKT DRR