Strategies to enhance the operational and financial performance of DISCOMs

The Council on Energy, Environment, and Water (CEEW) and REC Limited, a public infrastructure finance company, signed a Memorandum of Understanding (MoU) to collaborate on activities to improve the operational and financial sustainability of DISCOMs through the holistic deployment of smart metres, strengthening of power distribution networks, and improved quality of service for electricity consumers.

 The agreement was signed by R. Lakshmanan, Executive Director of RECL, and Dr. Arunabha Ghosh, CEO, Council on Energy, Environment, and Water (CEEW). CEEW will collaborate with REC Ltd. to conduct primary and secondary research to assist DISCOMs in their efforts to deploy smart metres, in addition to providing research and evaluation support. The CEEW’s research will also aid in the utilisation of smart metering infrastructure for improved service delivery and a positive consumer experience. R. Lakshmanan, Executive Director, REC, commented on the partnership, saying, “This partnership provides us with a framework for future collaborative projects that can help improve the performance of DISCOMs while reducing their financial losses.”

 “We are delighted to sign this MoU with REC and collaborate in several ways, including the use of technology and digitalisation, to make India’s power sector more efficient,” added Dr Arunabha Ghosh, CEO of CEEW. Improving distribution companies’ financial and operational efficiency through the deployment of smart metres is a major policy imperative. Without financially sustainable DISCOMs, India’s energy transition will take much longer than desired. 

The MoU will allow the parties to research best practices and regulations for the operation, management, and use of smart metering infrastructure. The parties will also collaborate to implement and evaluate innovative strategies to improve DISCOMs’ operational efficiencies and financial sustainability