BENGALURU: The Bangalore Electricity Supply Corporation Limited (BESCOM) has received a Red Card from the Ministry of Power. It has scored a (minus)-C in its distribution utilities ratings.
The 14th Annual Integrated Rating and Ranking of Power Distribution Utilities report, prepared by the Ministry, also showed that BESCOM scored the lowest compared to the other five ESCOMs of the state.
Bescom, Hescom (Hubbali), Mescom (Mangaluru), Gescom (Kalaburgi) and CESC (Mysuru) did not feature in the top 20 list of power distribution and utility companies. The MESCOM was listed 26th with a score of 56.44 and a B grade. The report showed that it had upgraded its services and finances from the 13th integrated ratings (32.24) and C grade.
In the report, a total of 54 state and private power distribution utilities were assessed and given ratings. Grade A+ was the top score with six stars, followed by ‘A’ with five stars, ‘B’ with four stars, ‘B-’ with three stars, ‘C’ with two stars and ‘-C’ with one star. The ratings were given based on 15 matrices and nine disincentives, culminating in a comprehensive score of 100.
The evaluation was done based on the utility’s overall performance, including cash adjustments, losses, debt to asset ratio, billing and collection efficiency, distribution losses, corporate governance and loss takeover by state governments. In the report, CESC was listed in the 44th position.
Detailing the works on BESCOM, the report stated that the total revenue of BESCOM for FY25 rose 2% year-on-year and was Rs 33,375crore, but there was no profit after taxes. The BESCOM got a base rating score of 28.94 out of 100 and a (minus)-16.50 special disincentives score out of (minus)-66.5.
Experts with the state government said, “55% of the total energy sold is by BESCOM in the state, yet they have not been able to make profits, which is a matter of concern. The grading is an alarm bell for the power sector.
The Karnataka Electricity Regulatory Commission (KERC) does not have supervisory power over the ESCOMs. In the case of Hescom and Gescom, the majority of power distribution is to the agricultural sector. Hence, revenue is low. There is no one holding company to oversee financial management and equitable distribution of resources of all five ESCOMs.”