Intro
BESCOM ranked last nationally, raising concerns over efficiency, finances and governance.
Bengaluru
The Bangalore Electricity Supply Corporation Limited (BESCOM) has received a Red Card and a (-C) grade in the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities released by the Union Ministry of Power, placing it at the bottom among Karnataka’s five electricity supply companies (ESCOMs).
The national assessment evaluated 54 state-owned and private power distribution utilities across the country. Based on performance across 15 key parameters and nine disincentive indicators, utilities were graded on a 100-point scale. Ratings ranged from A+ with six stars to (-C) with a single star, reflecting the weakest performance.
None of Karnataka’s ESCOMs — BESCOM, HESCOM (Hubballi), MESCOM (Mangaluru), GESCOM (Kalaburgi) and CESC (Mysuru) — featured among the top 20 power utilities in India. Among them, MESCOM recorded the best showing for the state, ranking 26th with a score of 56.44 and a B grade. This marked a significant improvement from its previous ranking, driven by better financial management and service delivery.
CESC stood at the 44th position, while BESCOM remained at the bottom with a base score of just 28.94 out of 100. The utility also attracted special disincentives amounting to minus 16.50 points out of a possible minus 66.5, which further dragged down its overall grade.
The evaluation covered parameters such as cash flow management, financial sustainability, aggregate technical and commercial losses, debt-to-asset ratio, billing efficiency, collection performance, corporate governance practices, and the extent of losses absorbed by state governments.
Despite being Karnataka’s largest electricity distributor, accounting for nearly 55 per cent of the state’s total energy sales, BESCOM continues to struggle financially. For the financial year 2024–25, the utility reported a total revenue of Rs 33,375 crore, a marginal two per cent year-on-year increase, but failed to post any profit after tax.
Experts associated with the state government described the ranking as an “alarm bell” for Karnataka’s power sector. They pointed to structural weaknesses, inefficient financial controls and the absence of a central holding company to oversee finances and resource allocation across ESCOMs as key factors contributing to the poor performance.
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The report also highlighted regulatory gaps, noting that the Karnataka Electricity Regulatory Commission (KERC) lacks adequate supervisory powers over ESCOMs, limiting its ability to enforce operational discipline. In HESCOM and GESCOM regions, heavy dependence on agricultural power supply, which generates lower revenue, continues to place additional strain on financial viability.
