Page 11 - Discoms
Icra pegs Rs 850 bn subsidy dependence for discoms amid low tariff hikes
Rating agency Icra has estimated a subsidy dependence of Rs 85,000 crore amid low tariff hikes allowed for discoms in 2018-19, and expects improvement in thermal plants capacity utilisation or PLF in near to medium term. "The domestic electricity demand growth is likely to remain at about 5 to 6 per cent in near to medium term, supported by thrust towards rural electrification, expected recovery in industrial/ commercial segment along with some improvement in the paying capacity of the state-owned distribution utilities," Girishkumar Kadam, Sector Head & Vice President, Icra Ratings, said in a statement. However, Kadam said the augmentation of domestic coal supply to meet such increase in demand for the IPPs/ Gencos remains crucial, and as a result, any delay in ramping up of coal supplies from domestic sources will lead to increase in the dependence on coal imports as seen during FY2018. The all India electricity demand growth slowed down to 3.1 per cent on a year-on-year basis ..
 "Icra pegs Rs 850 bn subsidy dependence for discoms amid low tariff hikes")
Discoms likely to consider PPAs as short-term power rates rise
Rising coal prices also pose a challenge for state distribution companies
 "Discoms likely to consider PPAs as short-term power rates rise")
State discoms hike industry power rates
Try to keep steady inflow of revenues under UDAY
 "State discoms hike industry power rates")
Cash-crunched discoms hinder growth of renewable energy projects
Said banks charge high interest due to projects built in high-risk states known for payment issues
 "Cash-crunched discoms hinder growth of renewable energy projects")
Discoms recover Rs 3K cr till mid-December post-demonetisation
UDAY scheme was launched for revival of the debt stressed power distribution companies
Discoms to turn around by next year thanks to UDAY, says power secretary
Centre working to improve energy efficiency and demand-side management
 "Discoms to turn around by next year thanks to UDAY, says power secretary")
Surplus power may cause Rs 8K cr loss to discoms in FY'17
Generators can now apply for a no objection certificate from the KERC to sell their surplus power outside the state
 "Surplus power may cause Rs 8K cr loss to discoms in FY'17")
Gujarat discoms lead the pack in annual rating
UP, Rajasthan laggards; subsidies and mounting losses cited for sick status
Delhi discoms asked to pay consumers for power cuts
DERC orders compensation payment for unscheduled outages of more than 2 hours
 "Delhi discoms asked to pay consumers for power cuts")
Discoms keen on shorter power purchase pacts instead of 25-year contracts
They hope to benefit from e-auction and continuing slide in power prices
 "Discoms keen on shorter power purchase pacts instead of 25-year contracts")
