Uttar Pradesh Power Distribution Companies Show Remarkable Progress in National Rankings
Six key power distribution companies (discoms) of Uttar Pradesh, including the privately operated NPCL, have demonstrated noticeable improvement in their operational and financial performance according to the latest national assessment. The 14th Annual Integrated Rating and Ranking of Power Distribution Utilities report was officially released by Union Power Minister Manohar Lal Khattar in Parwanoo, Himachal Pradesh, on Friday, highlighting significant strides made by Uttar Pradesh's electricity utilities.
Private Discom Leads with Top National Ranking
Leading the impressive performance is Noida Power Company Limited (NPCL), Uttar Pradesh's privately operated distribution company, which has secured the seventh position nationally with an A+ rating and an outstanding score of 96.18. This achievement places NPCL firmly among the top 10 power distribution utilities across the entire country, showcasing exemplary management and operational efficiency.
Public Discoms Show Substantial Improvement
Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL) emerged as a national standout by earning an A+ rating, representing a remarkable climb from its previous B grade. With a score of 86.57, PVVNL now ranks among India's top-performing discoms, reflecting strong progress in multiple areas including financial sustainability, timely payments to power suppliers, and improved cost recovery mechanisms. Notably, PVVNL is among the select group of distribution companies that successfully limited days payable to generation companies (Gencos) and transmission companies (Transcos) to below 60 days, earning full marks in this critical financial parameter.
Consistent Progress Across Multiple Utilities
Dakshinanchal Vidyut Vitaran Nigam Ltd (DVVNL) demonstrated significant advancement by progressing from a C to B rating with a score of 45.04. The utility received recognition for its improved billing and collection efficiency, along with a meaningful reduction in technical losses. This progress underscores DVVNL's growing emphasis on operational streamlining and digital transformation initiatives.
Madhyanchal Vidyut Vitaran Nigam Ltd (MVVNL) climbed from C to B- rating with a score of 38.82, showing upward momentum in reducing its ACS-ARR gap (Average Cost of Supply minus Average Revenue Realized). This improvement resulted from enhanced cost control measures and better subsidy realization processes.
Stable Performance and Reform Implementation
Kanpur Electricity Supply Company (KESCO) maintained its B rating with a stable score of 42.52, indicating consistent performance and steady recovery on key parameters including financial leverage and receivables management. The utility's efforts in adopting digital payment solutions and implementing customer-centric reforms have helped maintain its competitive position.
Purvanchal Vidyut Vitaran Nigam Ltd (PuVVNL), while still rated C, demonstrated meaningful progress by improving its score from 18.76 to 29.38. This improvement reflects focused reforms and better revenue management practices, including stronger billing systems and early results from efforts to reduce aggregate technical and commercial (AT&C) losses.
Financial Support and Reform Framework
One of the key enablers across all five public discoms has been the full realization of booked tariff subsidies, with Uttar Pradesh among the states where subsidy dues were completely cleared over the past three years. This financial support, combined with internal process reforms and digital transformation initiatives, is helping these utilities strengthen their foundation for long-term sustainability and improved service delivery.
National Context and Broader Implications
Uttar Pradesh's progress comes at a time when national power distribution metrics are showing significant improvement. India recorded its first-ever positive Profit After Tax (PAT) of Rs 2,701 crore for all rated discoms combined in FY25. Collection efficiency across the country reached 97%, while billing efficiency climbed to 87.59%, supported by comprehensive reforms under the Revamped Distribution Sector Scheme (RDSS).
At the national level, Torrent Power (serving Ahmedabad and Surat) and UGVCL (Gujarat) led the rankings with perfect or near-perfect scores, reflecting mature utility management and near-zero operational losses. These benchmarks provide important context for understanding Uttar Pradesh's achievements within the broader national landscape of power distribution reform.
Expert Perspective on State's Energy Sector
Avadhesh Kumar Verma, Member of the Central Electricity Regulatory Commission's Advisory Committee and Chairman of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad, described the performance upgrade as a positive sign for the state's energy sector. This expert endorsement underscores the significance of these improvements for Uttar Pradesh's overall power infrastructure development and consumer service enhancement.
The collective progress of Uttar Pradesh's power distribution utilities represents a significant step forward in the state's energy sector transformation, with implications for industrial growth, consumer satisfaction, and overall economic development. These improvements in operational efficiency, financial management, and service delivery metrics position Uttar Pradesh's power sector for continued advancement in the coming years.
