As power demand touched record levels during the last financial year, the cost of electricity for the power distribution companies (discoms) escalated, and so did their debt for meeting their working capital needs. Power demand grew at 8.9 per cent between financial year (FY) 2021 and 2023, as against 4.3 per cent between FY14 and FY20.
In the latest annual integrated rating and ranking of power distribution utilities by the Ministry of Power, it said the growth in power demand and global geopolitical challenges resulted in “an unprecedented increase in national power purchase costs of 71 paise per unit in FY23.”
