Burden of regulatory assets borne by power distribution companies in India

Last Modified: Wed Jul 03 2019 07:40:08 GMT+0530 (India Standard Time)
  • Rs. 1,200 billion
    Value of accumulated regulatory assets at the end of FY19. A regulatory asset is a specific cost of service recovery that a regulatory agency permits a public utility (in this case power distribution company) to defer to its balance sheet. These amounts would otherwise be required to appear on the company's income statement as current period expenses.
  • Rs. 22,000 crore
    Losses incurred by discoms annually due to the deferred pass-through of certain expenses.
  • Rs 21,658 crore
    FY19 losses incurred by discoms, an increase of 44% over previous fiscal.
  • 01 Jul 2019
    Power regulators may be asked to discontinue practice of allowing regulatory assets to be created. This was decided during deliberations held within Power Ministry and could have long term impact on both power consumers and companies.