Gujarat discoms project low growth in industrial segment
State-run power distribution companies expect lower growth in sales of electricity to industrial and commercial consumers due to the Covid-19 pandemic and other factors. The four discoms affiliated with Gujarat Urja Vikas Nigam Limited (GUVNL) have projected a lower growth rate of 5 per cent for electricity sales in the industrial HT (high tension) category for 2021-22.
Industrial HT consumers are mainly industrial units, commercial and office establishments with a connected load of above 100 kilowatt (kW). “As the Covid-19 pandemic has affected sales in this category, the company expects a lower growth rate. Hence, a growth rate of 5 per cent has been considered in FY 2021-22,” the state-run discoms stated while providing their sales projections for the next fiscal in their annual tariff petitions filed with the Gujarat Electricity Regulatory Commission (GERC).
These power distribution companies are Uttar Gujarat Vij Company Ltd (UGVCL), Dakshin Gujarat Vij Company Ltd (DGVCL), Paschim Gujarat Vij Company Ltd (PGVCL) and Madhya Gujarat Vij Company Ltd (MGVCL).
For their sales projections, the discoms normally consider the 3-year compounded annual growth rate (CAGR). In the case of UGVCL, this 3-year CAGR (till 2019-20) is 11.98 per cent.
