The State Electricity Transition (SET) report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember shed light on the performance of distribution companies (DISCOMs) in various states, with a focus on the electricity transition.
Among them, the Bangalore Electricity Supply Company Limited (BESCOM), a major DISCOM in Karnataka accounting for nearly 47 per cent of total power purchases, received a concerning rating.
In the 12th edition of the Integrated Rating of DISCOMs, BESCOM ranked 43rd nationwide, downgraded to a C grade with a rating score of 21.8. This is a significant decline compared to its 31st position and B-grade rating with a score of 40.2 in the previous edition.
The company also received red card metrics under the Auditor’s Adverse Opinion.
The report highlighted BESCOM’s lack of state government support for loss takeover in FY23, amounting to 1,700 crore. Additionally, it scored poorly in financial sustainability (20.6 out of 75), performance excellence (9.1 out of 13), and external environment (7 out of 12). It recorded 32,335 MUs of net input energy and 29,365 MUs of net sold energy.
Minister RK Singh links power price hikes to DISCOMs’ short-term power purchases, stressing the importance of securing long-term PPAs for 85% of electricity needs.
Karnataka, with limited distributed solar energy capacity (~1,592 MW), ranks fifth in renewable energy addition from 2020 to February 2024, contributing around seven per cent (~3.4 GW) of the total among 21 states. The state is also advancing in the electric vehicle (EV) sector.
