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					</table>Punjab, Karnataka, and Maharashtra have topped the list of states in the first-ever assessment of regulatory performance in the power sector, with scores of 97, 96, and 94 out of 100, respectively.
Assam and Arunachal Pradesh rounded off the top five with scores of 93 and 91, respectively, according to the “Rating Regulatory Performance of States and Union Territories 2025” report released jointly by the Power Foundation of India (<a href="https://www.powerfoundation.org.in/" target="_blank" rel="noopener">PFI</a>) and <a href="https://recindia.nic.in/" target="_blank" rel="noopener">REC</a>.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-90780 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking.png" alt="" width="791" height="1007" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking.png 791w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking-236x300.png 236w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking-768x978.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking-650x827.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking-624x794.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/regualtory-ranking-600x764.png 600w" sizes="auto, (max-width: 791px) 100vw, 791px" /></a>
The report presents a structured, evidence-based assessment of the regulatory performance of states and union territories (UT), focusing on the effectiveness of electricity regulation in ensuring reliable, affordable, consumer-centric, and sustainable power supply.
The rating exercise reviews the regulatory performance on a 100-point scale. The performance is assessed based on a set of core parameters covering resource adequacy (32 marks), financial sustainability (25), ease of doing business (23), energy transition (15), and regulatory governance (5). The evaluation is based on verifiable regulatory instruments, including tariff orders, true-up orders, regulations, and rules issued up to June 30, 2025.
Based on their overall scores, the states and UTs have been categorized into performance grades A, B, C, D, and E. According to the report, 21 states and UTs achieved A and B grades, demonstrating strong regulatory practices, marked by timely tariff determination, cost-reflective tariffs, improved consumer service standards, and proactive support for renewable energy integration.
The report highlighted strong performance across several states and identified gaps that warrant greater attention and institutional strengthening. “The objective of this exercise is not to rank for competition, but to enable cross-learning, promote adoption of best practices, and encourage the development of a consistent, predictable, and consumer-centric regulatory environment across the country,” it said.
The Ministry of Power’s annual <a href="https://www.mercomindia.com/power-sector-reforms-help-discoms-post-profits-in-fy-2025-for-first-time" target="_blank" rel="noopener">ratings</a> for government and private power utilities focus mainly on financial performance, whereas the PFI-REC report focuses on how the state electricity regulatory commissions are enforcing energy transition mandates, such as renewable procurement obligations and green energy open access, formulating resource adequacy plans, and protecting consumer rights.
In all, 11 states and UTs received an A grade (85 marks and above), 10 received a B grade, 10 received a C grade, 4 received a D grade, and 1 received an E grade.
Punjab scored 32/32 for reliability of power supply, 25/25 for the financial health of distribution companies (DISCOMs), 23/23 for ease of business, 12/15 for energy transition, and 5/5 for regulatory governance.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard.jpg"><img loading="lazy" decoding="async" class="aligncenter wp-image-90775 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard.jpg" alt="Punjab Regulatory Performance Scorecard" width="1145" height="1531" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard.jpg 1145w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard-224x300.jpg 224w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard-768x1027.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard-650x869.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard-624x834.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/Punjab-Regulatory-Performance-Scorecard-600x802.jpg 600w" sizes="auto, (max-width: 1145px) 100vw, 1145px" /></a>
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Renewables-rich Rajasthan fared poorly with a total score of 39/100 and a D grade. Andhra Pradesh, Tamil Nadu, Telangana, and West Bengal were graded C, while Gujarat and Odisha got a B rating. Gujarat scored just 10/32 for resource adequacy.
The report noted that many top-performing states complied with Green Energy Open Access Rules and Renewable Purchase Obligation trajectories notified by the Ministry of Power. Compliance among the laggard states on these parameters was mixed.
The PFI-REC report also highlighted that the DISCOMs continued to incur losses, with the accumulated losses climbing to ₹6.47 trillion (~$71.35 billion) in the financial year (FY) 2024-25. Aggregate Technical and Commercial losses, however, improved to 15.04% in FY 2024-25.

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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has released the eleventh annual integrated ratings and rankings report for the financial year (FY) 2022, which assessed the financial and operational performance of 71 power distribution companies (DISCOMs).
Only 51 were included in the ranking because the others consisted of state power departments and DISCOMs that have not yet completed three full years of operations.
The evaluation was based on parameters such as Average Cost of Supply (ACS) – Average Realizable Revenue (ARR) gap, Aggregate Technical and Commercial (AT&amp;C) loss, billing efficiency, collection efficiency, governance, subsidy realized, and adherence to tariff cycle timelines.
The top ten DISCOMs, according to the report, are:
Maharashtra
Adani Electricity Mumbai (<a href="https://www.adanielectricity.com/" target="_blank" rel="noopener">AEML</a>) secured the top rank among 51 utilities. The DISCOM sold 7,956 million units (MU), generating revenue of ₹71.2 billion (~$866.9 million). AEML’s net profit for FY22 was ₹10.8 billion (~$131.6 million).
AEML’s ACS-ARR gap improved significantly to ₹-0.55 (~-$0.0067)/ kWh in FY22 from ₹0.37 (~$0.0045)/ kWh year-over-year (YoY).
AT&amp;C losses improved to 6.7% compared with 8.9% YoY, primarily driven by an improvement in billing efficiency, reaching 93.3% from 91.7% YoY.
AEML supplies power to 3,072,704 customers comprising 14.8% commercial and industrial (C&amp;I) consumers.
Tata Power Mumbai (<a href="https://www.tatapower.com/" target="_blank" rel="noopener">TPML</a>) secured the eighth rank. The DISCOM had sold 4,730 MU generating revenue of ₹34.8 billion (~$423.7 million). TPML’s net profit for FY22 was ₹1.48 billion (~$18 million).
TPML’s ACS-ARR gap improved to ₹-0.10 (~-$0.0012)/ kWh from ₹0.10 (~$0.0012)/ kWh YoY.
However, AT&amp;C losses worsened to 2.1% from 0.2% YoY due to a decline in billing efficiency at 98.7% from 100% YoY.
TPML supplies power to 1,885,578 customers, 14.17% are C&amp;I consumers.
Gujarat
Uttar Gujarat Vij Company (<a href="https://www.ugvcl.com/" target="_blank" rel="noopener">UGVCL</a>) secured the second rank. The DISCOM sold 26,157 MU, generating revenue of ₹156.87 billion (~$1.9 billion). UGVCL’s net profit for FY22 was ₹780 million (~$9.5 million).
UGVCL’s ACS-ARR gap deteriorated significantly to ₹-0.01 (~-$0.00012)/ kWh from ₹-0.23 (~$0.0028)/ kWh YoY.
AT&amp;C losses improved to 6.7% from 6.8% YoY due to its billing efficiency currently at 93.9%.
UGVCL supplies power to 3,936,893 customers, 12.3% of who are in the C&amp;I segment.
Madhya Gujarat Vij Company (<a href="https://www.mgvcl.com/" target="_blank" rel="noopener">MGVCL</a>) secured the third rank. The DISCOM sold 12,209 MU, generating revenue of ₹79.92 billion (~$973.6 million). MGVCL’s net profit for FY22 was ₹1.03 billion (~$12.5 million).
MGVCL’s ACS-ARR gap deteriorated marginally to ₹-0.05 (~-$0.00061)/ kWh from ₹-0.13 (~$0.0016)/ kWh YoY.
AT&amp;C losses improved to 8.7% from 10% YoY– driven by an improvement in billing efficiency at 92.3% from 90% YoY.
MGVCL supplies power to 3,409,802 customers, 11.51% of whom are C&amp;I consumers.
Paschim Gujarat Vij Company (<a href="https://www.pgvcl.com/" target="_blank" rel="noopener">PGVCL</a>) secured the fifth rank. The DISCOM sold 32,213 MU, generating revenue of ₹211.11 billion (~$2.5 billion). PGVCL’s net profit for FY22 was ₹970 million (~$11.8 million).
PGVCL’s ACS-ARR gap improved to ₹-0.22 (~-$0.0027)/ kWh from ₹-0.04 (~-$0.00049)/ kWh YoY.
AT&amp;C losses improved to 16.7% from 17.9% YoY due to improvement in billing efficiency of 83.6% from 82.1% YoY.
PGVCL supplies power to 6,385,410 customers. C&amp;I consumers constitute 12.09% of total customers.
Dakshin Gujarat Vij Company (<a href="https://www.dgvcl.com/" target="_blank" rel="noopener">DGVCL</a>) secured the sixth rank. The DISCOM sold 24,748 MU, generating revenue of ₹173.96 billion (~$2.1 billion). PGVCL’s net profit for FY22 was ₹950 million (~$11.5 million).
DGVCL’s ACS-ARR gap deteriorated to ₹0.07 (~$0.00085)/ kWh from ₹-0.25 (~-$0.0030)/ kWh YoY.
AT&amp;C losses improved to 4.8% from 7.4% YoY due to an improvement in billing efficiency of 97% from 92.6% YoY.
DGVCL supplies power to 3,512,052 customers, 14.68% are in the C&amp;I segment.
Dadra &amp; Nagar Haveli
DNH Power Distribution Corporation (<a href="https://www.dnhddpcl.in/" target="_blank" rel="noopener">DNHPDCL</a>) secured the fourth rank. The DISCOM sold 6,648 MU, generating revenue of ₹35.88 billion (~$437.2 million). DNHPDCL’s net profit for FY22 was ₹1.06 billion (~$13 million).
DNHPDCL’s ACS-ARR gap deteriorated to ₹-0.14 (~-$0.0017)/ kWh from ₹-0.39 (~$0.0048)/ kWh YoY.
AT&amp;C losses improved to 3.5% from 5.2% YoY– driven by an improvement in collection efficiency of 99.4% from 98.5% and billing efficiency of 97.1% from 96.4% YoY.
DNHPDCL supplies power to 89,219 customers, with 12.67% of them being C&amp;I consumers.
Uttar Pradesh
Noida Power Company (<a href="https://www.noidapower.com/" target="_blank" rel="noopener">NPCL</a>) secured the seventh rank. The DISCOM sold 2,338 MU, generating revenue of ₹20.55 billion (~$250.4 million). PGVCL’s net profit for FY22 was ₹1.5 billion (~$18.3 million).
NPCL’s ACS-ARR gap deteriorated to ₹-1.09 (~-$0.013)/ kWh from ₹-1.47 (~-$0.018)/ kWh YoY.
AT&amp;C losses improved to 8.5% from 9.8% on the back of an improvement in collection efficiency to 99.4% from 98.5% YoY.
NPCL supplies power to 117,755 customers, 7.47% of whom are C&amp;I consumers.
Haryana
Dakshin Haryana Bijli Vitran Nigam (<a href="https://www.dhbvn.org.in/web/portal/home" target="_blank" rel="noopener">DHBVNL</a>) secured the ninth rank. The DISCOM sold 27,752 MU, generating revenue of ₹185.74 billion (~$2.3 billion). DHBVNL’s net profit for FY22 was ₹1.79 billion (~$21.8 million).
DHBVNL’s ACS-ARR gap remained constant at ₹-0.11 (~-$0.0013)/ kWh.
AT&amp;C losses improved to 13.6% from 16.9% YoY– driven by an improvement in billing efficiency to 86.4% from 83.1% YoY.
DHBVNL supplies power to 3,960,432 customers. C&amp;I consumers constitute 11.39% of its customers.
Uttar Haryana Bijli Vitran Nigam (<a href="https://www.uhbvn.org.in/web/portal/home" target="_blank" rel="noopener">UHBVNL</a>) secured the tenth rank. The DISCOM sold 19,749 MU, generating revenue of ₹141.73 billion (~$1.7 billion). UHBVNL’s net profit for FY22 was ₹6.7 billion (~$81.6 million).
UHBVNL’s ACS-ARR gap improved to ₹-0.34 (~-$0.0041)/ kWh from ₹-0.22 (~-$0.0027)/ kWh YoY.
AT&amp;C losses improved to 14% from 17.2% YoY, as billing efficiency rose to 86% from 82.8% YoY.
UHBVNL supplies power to 3,422,373 customers, 12.47% of whom are C&amp;I consumers.
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