Positive Trends: Operational performance of power utilities

The operational performance of power utilities has improved over the past year. There has also been a notable increase in power demand, which is reflected in the increasing utilisation levels measured by the plant load factor (PLF) of thermal power plants (TPPs). In contrast, transmission utilities exhibited a mixed trend in the past year. While some reported a decline in transmission losses, others reported an increase. On the other hand, the performance of discoms has improved. At the all-India level, AT&C losses have reduced to 13.5 per cent (provisional) in 2022-23, from 16.4 per cent in 2021-22 and 22.3 per cent in 2020-21.

Power Line presents an overview of the performance of utilities across the power sector during the past year…

Generation

The national PLF of TPPs stood at 64.15 per cent during 2022-23, an increase of 5.24 percentage points from the 58.91 per cent recorded in 2021-22. Of the 34 utilities tracked by Power Line Research during 2022-23, 26 utilities reported an increase in PLF over the previous year. The highest PLF (88.52 per cent) was reported by Singareni Collieries Compa­ny Limited (SCCL), which operates the 1,200 MW Singareni TPP in Telangana, followed by Torrent Power Limited with a PLF of 88.23 per cent.

Sector-wise, the central sector recorded the highest PLF during 2022-23. The av­e­rage PLF of central sector-owned plan­ts stood at 74.67 per cent, higher than the 69.44 per cent recorded in the previous year. In the state sector, the PLF was re­cor­ded at 61.86 per cent during 2022-23, significantly higher than the 54.61 per cent recorded a year ago. In the private sector, the PLF increased from 53.48 per cent in 2021-22 to 56.64 per cent in 2022-23.

Among central utilities, NTPC Limited recorded a PLF of 75.74 per cent during 2022-23, 5.39 percentage points higher than its previous year’s record of 70.35 per cent. NTPC’s best performing plant during 2022-23 was the Korba super thermal power station (STPS) in Chhattisgarh, which recorded a PLF of 91.15 per cent, whereas its lowest PLF of 48.69 per cent was recorded at its Khargone STPS in Madhya Pradesh. Among other central sector utilities, the Damodar Valley Corporation recorded an increase of 4.47 percentage points in its PLF, from 68.96 per cent during 2021-22 to 73.43 per cent during 2022-23, whereas the PLF of NLC India Limited decreased from 71.31 per cent to 68.87 per cent during 2022-23.

At the state level, SCCL was the best performing utility with an impressive PLF of 88.52 per cent during 2022-23, which is well above the average state sector PLF of 61.86 per cent as well as the national average. West Bengal Power Develop­me­nt Corporation Limited was the second-best performing state utility with a PLF of 85.36 per cent, followed by Odisha Power Generation Corporation Limited with a PLF of over 76.92 per cent and Telangana State Power Generation Cor­po­ration Limited (TSGenco) with a PLF of 71.65 per cent during 2022-23. Only two state utilities, SSCL and TSGenco, re­corded a decline in PLF during 2022-23 compared to 2021-22, while the rest reported an increase from the previous year’s level. The highest increase in PLF was reported by Haryana Power Genera­tion Corpora­tion Limited (HPGCL) and Punjab State Po­wer Corporation Limited (PSPCL). HPGCL’s PLF increased by 34.95 percentage points, going from 36.56 per cent during 2021-22 to 71.51 per cent during 2022-23. Meanwhile, PSPCL re­co­r­ded an increase of 24.05 percentage points, from 24.27 per cent during 2021-22 to 48.32 per cent during 2022-23.

In the private sector, PLFs varied widely, ranging from 19.56 per cent to 88.23 per cent. CESC Limited, Essar Power Madh­ya Pradesh Limited, Essar Power Gujarat Limited, Coastal Gujarat Power Limited, RattanIndia Power Limited, Adani Elec­tricity Mumbai Limited (AEML) (Daha­nu TPP) and Torrent Power Limited (Sa­barmati TPP) witnessed an increase in PLFs during the review period. All other private sector utilities registered a dec­line in their PLFs. Five private utilities reported PLFs higher than the national average. These are Jindal India Thermal Private Limited (JITPL), Ra­tt­an­India, AEML, Sasan Pow­er Limited and Torrent Power Limi­ted (Sabarmati TPP). The highest year-on-year decline in PLF was reported by Sa­san Power Limited, which saw its PLF go down from 94.19 per cent during 2021-22 to 85.8 per cent during 2022-23. Me­an­while, the highest year-on-year in­crease in PLF was reported by Essar Power Gujarat Limited, which registered a PLF of 19.56 per cent during 2022-23 from zero generation during 2021-22.

Transmission

The performance of state transmission utilities exhibited a mixed trend during 2022-23, with utilities tracked by Power Line Research reporting transmission losses in the range of 1.09 per cent for Power Transmission Corporation of Utt­a­rakhand Limited (PTCUL) to 3.27 per cent for Uttar Pradesh Power Trans­mi­ssion Corporation Limited (UPPTCL) during 2022-23.

Of the 10 utilities for which data is available for 2022-23, four utilities registered a decline in their transmission losses during 2022-23 over the previous year. Meanwhile, five utilities – PTCUL, Har­yana Vidyut Prasaran Nigam Limited (HVPNL), Transmission Corporation of Telangana Limited (TSTRANSCO), Ma­ha­­rashtra State Electricity Transmission Company Limited and Karnataka Power Transmission Corporation Limited (KPTCL) – registered an increase. One uti­lity, Bihar State Power Transmission Company Limited (BSPTCL), did not register any change.

Among the utilities tracked, PTCUL reported the lowest transmission losses at 1.09 per cent, followed by HVPNL at 1.93 per cent. Meanwhile, Punjab State Tra­nsmission Corporation Limited, TSTRANSCO, Transmission Corporation of Andhra Pradesh Limited, Karnataka Po­wer Transmission Corporation Limit­ed and BSPTCL recorded losses of 2-3 per cent during 2022-23. The remaining state transcos reported losses in the range of 3.14-3.27 per cent, including state utilities of Uttar Pradesh, Odisha and Maha­rashtra. The transco with the highest loss of 3.27 per cent was UPPTCL.

Distribution

Data was collated by Power Line Resear­ch for 60 discoms (45 state-owned distribution utilities and 15 private utilities) from tariff orders, the BEE energy audit report and company reports. It was obser­ved that among the state utilities, AT&C losses ranged from as low as 0.5 per cent for Tata Power to as high as 44-54 per cent for the Jammu & Kashmir Power Develo­pment Department (JKPDD) during 2022-23. A total of 33 state utilities reported a decline in AT&C losses during 2022-23 compared to 2021-22. The most significant improvements were reported by TP Northern Odisha Distribution Limited, TP Central Odisha Distribution Limited, TP Southern Odisha Distribu­ti­on Limi­ted, TP Western Odisha Distri­bu­tion Limited and Tripura State Electricity Corporation Limited, which reported a reduction of 11-13 percentage points in AT&C losses.

Among the state utilities, Ajmer Vidyut Vitran Nigam Limited (AVVNL) was the best performer with AT&C losses of 3 per cent during 2022-23. In addition, 17 state-owned utilities reported/estimated AT&C losses of less than 15 per cent during 2022-23. These are Andhra Pradesh Central Power Distribution Company Limited (APCPDCL), Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL), Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL), Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Goa Power Department, Dakshin Harya­na Bijli Vitran Nigam Limited (DHBVNL), Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), Uttar Gujarat Vij Company Limited (UGVCL), Gulbarga Electricity Supply Company Limited (GESCOM), Bangalore Electricity Supply Company Limited (BESCOM), Kerala State Elec­tri­city Board Limited (KSEB), Madhya Pra­desh Paschim Kshetra Vidyut Vitran Company Limited, Maharashtra State Electricity Distribution Company Limit­ed, Punjab State Power Corporation Li­mi­ted, AVVNL, and Kanpur Electricity Su­pply Company Limited.

The worst performing state-owned utilities during 2022-23 were JKPDD, North­ern Power Distribution Company of Telangana Limited, and Madhya Prade­sh Poorv Kshetra Vidyut Vitaran Com­pa­ny Limited with AT&C losses of 54 per cent, 36.33 per cent and 30.18 per cent respectively.

Meanwhile, private sector discoms continued to report a steady performance with losses of less than 10 per cent over the past couple of years. Only the four Odisha discoms that were acquired by Tata Power during 2019-20 and 2020-21 reported losses of 11-22 per cent. Tata Power Mumbai’s AT&C loss during 2022-23 was less than 1 per cent. Me­anwhile, AEML reported AT&C loss of 5.93 per cent during 2022-23. Among the Delhi discoms, Tata Power Delhi Distribution Li­mited, for which information was available, recorded AT&C losses of 6.5 per cent. In Gujarat, the AT&C losses of Torrent Power-Surat and Torrent Power-Ahmedabad stood at 3.17 per cent and 3.74 per cent respectively. Meanwhile, Noida Power Company Limited’s (NPCL) AT&C loss was recorded at 8.1 per cent.

Conclusion

Overall, power utilities have shown sig­ns of recovery in their operational per­formance. The thermal power generation segment, which was reeling from declining PLFs, has shown improvement due to an increase in power consumption. The electricity distribution segment has also witnessed improvement in its operational performance. The Late Payment Surcharge Rules have allowed discoms to clear their past dues in equated monthly instalments. Going ahead, the Revamped Distribution Sec­tor Scheme is expected to strengthen the distribution network and enhan­ce the operational and financial performance of utilities.