Uttar Pradesh Power DISCOMs Record Strong Improvement in FY25 Ratings, Led by PVVNL’s A+ Performance

Uttar Pradesh’s power distribution sector showed a mix of strong progress and ongoing challenges in the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities for FY 2024-25. The report highlights clear improvement in some utilities, while also pointing to areas where sustained effort is still required to ensure long-term financial and operational stability across the state.

The standout performer was Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), which achieved an A+ rating with a score of 86.57. This marked a major jump from its B grade in the previous year and placed PVVNL among the top-performing power distribution utilities in the country. The upgrade reflects better financial discipline, improved operations, and a strong track record of making timely payments to power generation and transmission companies. PVVNL’s performance is seen as a benchmark for other state-owned utilities aiming to improve their ratings.

Other government-owned distribution companies in the state also showed signs of recovery. Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) and Madhyanchal Vidyut Vitran Nigam Limited (MVVNL) both improved their ratings from C- to B-, indicating progress in key performance indicators such as billing, collection, and operational efficiency. Kanpur Electricity Supply Company (KESCO) retained its B- rating, reflecting stable performance, while Purvanchal Vidyut Vitran Nigam Limited (PuVVNL) improved marginally from C- to C. In the private sector, Noida Power Company Limited (NPCL) continued to perform strongly and was again recognized for its high efficiency in revenue collection and timely payments.

Despite these positive developments, the report points out that Uttar Pradesh still faces significant aggregate challenges. The state’s overall Aggregate Technical and Commercial (AT&C) losses stood at 19.54 percent in FY 2024-25. This figure is lower than the 22.18 percent recorded in FY 2022-23 but higher than the 16.39 percent achieved in FY 2023-24, showing that loss reduction efforts need to be more consistent. Among individual utilities, PuVVNL reported high AT&C losses of 26.33 percent, while KESCO performed better with losses limited to 14.54 percent.

Operational performance also varied across the state. Billing efficiency for Uttar Pradesh reached 86.29 percent, while collection efficiency stood at 93.24 percent. To address losses and improve revenue, utilities are increasingly using technology-driven solutions. These include AI and machine learning-based vigilance applications to detect power theft, as well as the rollout of smart meters under the Revamped Distribution Sector Scheme to ensure accurate billing and better revenue realization.

Overall, the latest integrated rating shows that targeted reforms and technology adoption are beginning to deliver results in Uttar Pradesh. While PVVNL has emerged as a clear leader, sustained efforts are needed to reduce losses, improve efficiency, and close revenue gaps across all distribution companies to ensure a financially sustainable power sector in the state.