Uttar Pradesh Power Distribution Companies Achieve Notable Progress in National Rankings
Six key power distribution companies (discoms) of Uttar Pradesh, including the privately operated utility NPCL, have demonstrated noticeable improvement in their operational performance according to the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities report. The comprehensive assessment was officially released by Union Power Minister Manohar Lal Khattar during a ceremony held in Parwanoo, Himachal Pradesh, on Friday.
Private Sector Excellence and Public Sector Transformation
Leading this remarkable progress is Noida Power Company Limited (NPCL), the state's privately managed distribution utility, which has secured an impressive seventh position nationally with an A+ rating and an outstanding score of 96.18. This achievement places NPCL firmly among the top ten power distribution companies across the entire country, showcasing exemplary operational standards and customer service delivery.
Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL) emerged as a particularly noteworthy success story, achieving an A+ rating that represents a dramatic improvement from its previous B grade. With a score of 86.57, PVVNL now ranks among India's top-performing distribution utilities, reflecting substantial advancements in multiple critical areas including financial sustainability, timely payments to power suppliers, and enhanced cost recovery mechanisms.
Comprehensive Performance Improvements Across Multiple Parameters
Dakshinanchal Vidyut Vitaran Nigam Ltd (DVVNL) demonstrated significant progress by advancing from a C- to B- rating with a score of 45.04. The utility received recognition for its enhanced billing and collection efficiency, along with measurable reductions in technical losses. This upward trajectory highlights DVVNL's growing emphasis on operational streamlining and digital transformation initiatives.
Madhyanchal Vidyut Vitaran Nigam Ltd (MVVNL) similarly climbed from C- to B- rating with a score of 38.82, showing positive momentum in reducing its ACS-ARR gap (Average Cost of Supply minus Average Revenue Realized). This improvement stems from strengthened cost control measures and more effective subsidy realization processes.
Kanpur Electricity Supply Company (KESCO) maintained its B- rating with a stable score of 42.52, indicating consistent performance and steady recovery across key parameters including financial leverage and receivables management. The utility's proactive adoption of digital payment solutions and customer-centric reforms has 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 substantial improvement reflects focused reform initiatives and enhanced revenue management practices, including stronger billing systems and early successes in reducing aggregate technical and commercial losses.
Financial Reforms and National Context
A crucial enabling factor across all five public discoms has been the complete realization of booked tariff subsidies, with Uttar Pradesh emerging among the states where subsidy dues were fully cleared over the past three years. This financial support, combined with internal process reforms, has strengthened the utilities' foundation for long-term sustainability and operational excellence.
Uttar Pradesh's progress aligns with broader national improvements in the power distribution sector. India recorded its first-ever positive Profit After Tax (PAT) of Rs 2,701 crore for all rated discoms combined in FY25. National collection efficiency reached 97%, while billing efficiency climbed to 87.59%, supported by comprehensive reforms under the Revamped Distribution Sector Scheme (RDSS).
National Leadership and Expert Perspectives
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 practices and near-zero operational losses.
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 upgrades as a positive indicator for the state's energy sector development. These improvements signal enhanced service reliability and financial stability for consumers across Uttar Pradesh.
