Adani Electricity Mumbai Ltd (Adani Electricity) has ranked as the leading electricity distribution company among 71 such companies in the country. Adani Electricity received this recognition for its exemplary governance, encompassing financial sustainability, performance excellence, and external environment.
According to the release, in the Ministry of Power’s 11th edition of the ‘Annual Integrated Rating and Ranking’ of the country’s power distribution utilities, Adani Electricity secured the 1st rank with Grade A+ and the highest integrated score of 99.6 out of 100.
The recently published rating report, prepared by McKinsey and Company, evaluates power distribution utilities based on the accounts of the past three financial years, ranging from 2019-2020 to 2022-2023.
Adani Electricity Mumbai Ltd (Adani Electricity) recently announced the lowest tariff hike among all the distribution companies (discoms) in Maharashtra for the period reviewed under the Multi-Year Tariff mechanism. This reflects the company’s responsible financial and operational practices.
Adani Electricity Mumbai Ltd (Adani Electricity) has achieved a remarkable feat by emerging as the best and only private utility to be rated among the top five in the exhaustive evaluation exercise. Additionally, Adani Electricity is one of the 15 distribution companies (discoms) that received no negative marking.
“Over the last five years, our customer-centric focus has enabled us to reduce and stabilize tariffs, optimise power purchase costs and improve operational efficiencies through state-of-the-art technology interventions such as SCADA, automated workflow management and a digital-first approach,” said Kandarp Patel, MD, Adani Electricity Mumbai Ltd.
“These efforts have made us not only Mumbai’s but one of India’s most competitive electricity providers, as recognized by the Power Finance Corporation and the Ministry of Power. This independent recognition is a testament to our commitment to serving our customers with reliable, affordable, and sustainable electricity,” Patel added.
He also added, “We will continue to enhance our services and infrastructure to exceed global benchmarks. We also recommit ourselves to doubling our share of renewable energy to 60%. This is our commitment to Mumbai and to all our stakeholders who have stood by us through this journey to Number One.”
The Annual Integrated Rating and Ranking exercise is conducted by the Power Finance Corporation Ltd, which acts as the nodal agency, following the framework approved by the Ministry of Power in 2012.
This comprehensive evaluation covers a total of 71 power distribution utilities, including 45 state distribution companies (discoms), 14 private discoms, and 12 power departments across India.
The exercise provides a blueprint for stakeholders to assess performance, identify gaps, measure the impact of steps taken and plan ahead.
The release also informed that Adani Electricity scored 12.8 out of 13 for Performance Excellence, covering Billing Efficiency, Low Distribution Loss, Collection Efficiency and Corporate Governance. Under the External Environment, Adani Electricity scored 11.9 out of 12 for subsidy realized (last 3 FYs), loss takeover by the State Government, Government Dues (last 3 FYs), Tariff Cycle Timelines and Auto Pass-Through of Fuel Costs.
“Under Financial Sustainability, Adani Electricity scored all 75 marks for its ACS -ARR Gap (Cash adjusted), Days Receivable, Days Payable to Generation Companies, Adjusted Quick Ratio, Debt Service Coverage Ratio (Cash Adjusted) and Leverage Debt / EBITDA (Cash adjusted),” added the release further.
For all the above parameters, Adani Electricity has scored in the top matrix, and the superior ranking is a result of a set of best practices in the industry, including the following:
Digitized bill generation and payments – partnering with UPIs and payment gateways to facilitate ease of payment for the customers.
The implementation of advanced meter reading technology has resulted in a significant reduction in billing errors.
Additionally, the utilization of analytics and management information systems (MIS) has helped to curb power theft through increased vigilance efforts. As a result, distribution losses have decreased from 9.1% to 6.7% within the past 2 years.
