(T.E.T)
The Centre is preparing accounting rules for electricity distribution companies which are said to be showing exaggerated assets while non-provisioning losses. This could mean the discoms are in a much worse condition than expected. The accumulated losses of power distribution companies have risen at a fast rate over the last five years to about Rs 5.2 lakh crore as on March 31, 2021. The gap between the average cost of supply and revenue of distribution companies is 60 paise and the total regulatory assets, or deferred tariff hikes, are nearly Rs 1.25 lakh crore. “The accounts of distribution companies do not reflect the true picture.
We are preparing rules for standard definitions of the elements which go into the accounting so that the lenders, public and other stakeholders have access to the correct picture,” a senior government official said. “The draft rules for discom accounting are ready and will be circulated among stakeholders for comments,” the official said. Late disposal of tariff petitions by state electricity regulators, non-reflective tariffs, non-payment of subsidy by states and dues by government departments are some of the issues responsible for this financial condition of discoms.
