CESC’s new distribution licence for Chandigarh to bolster revenues

CESC, a Kolkata-based RP-Sanjiv Goenka Group company, has received its sixth distribution licensing area outside Kolkata in Chandigarh — expanding the power utility’s distribution footprint and giving it an additional revenue stream.

CESC’s wholly-owned subsidiary, Eminent Electricity Distribution, emerged as the highest bidder after acquiring a 100% stake in the power distribution company of Chandigarh.

The company would be granted a distribution licence for 25 years but the required formalities for getting the license were currently under process. “Once operational this will significantly bolster the company’s distribution footprint,” CESC said in its annual report for FY22.

The license area spread across 114-sq km with around 2.3 lakh consumers is estimated to have about 1,600 MW in annual electricity sales. Chandigarh, a union territory, has one of the country’s highest per capita incomes, allowing CESC to further strengthen its revenue stream.

Other than Kolkata, CESC has distribution ventures in Greater Noida, Kota, Bharatpur, Bikaner and Malaygaon serving 72 lakh consumers. Its electricity sales during FY22 in five distribution areas grew 13.5% year-on-year over FY21 accounting for 4,965 million units of electricity distribution.

In Kolkata and adjacent areas of Howrah, Hooghly, North and South 24 Paraganas, where CESC serves 35 million customers, 15 lakh new meters were installed and 97,000 new connections were given. The average time taken for providing a new connection was between one and two days, the report said.

The company as a measure to enhance public safety, especially around the roadside pillar boxes, has introduced IOT-based water level indicators to get automatic information and trigger messages to the control room to take preemptive measures when water level, is in the water logged areas rises at an alarming level.

However, expressing concerns over the rising input costs, RP-Sanjiv Goenka Group chairman Sanjiv Goenka said the power companies witnessed the reluctance of state governments and regulators to increase tariffs on time. “This in turn negatively affects the financial sectors of power producers,” he added.

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