Being in the essential service of electricity, Power Grid Corporation of India did not see any impact of the COVID-19 lockdown in FY20. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration, PGCIL said in a statement.
Due to the various steps taken by the company, there has been no significant impact due to the pandemic on the availability of the transmission system of the company.
As per government guidelines, transmission units and services were exempted from the lockdown that was imposed on March 25, 2020.
PGCIL is mainly engaged in the business of transmission of electricity and the tariffs for the transmission services are regulated in terms of the CERC Tariff Regulations which provide for recovery of the annual transmission charges based on system availability.
PGCIL has issued guidelines and protocols to be followed by its various units for the operation and maintenance of its transmission network during the pandemic. The company has also implemented digital solutions such as eoffice, ERP systems, Virtual Private Network, Video Conferencing etc. to facilitate work-from-home of its employees.
Delay in realisation of transmission charges from customers is expected in the next financial year.
There has been no material impact on the operations or profitability of the company during the financial year due to the pandemic. Due to the lockdown, there has been a general fall in the demand for electricity in the country and the revenue realisation of the distribution utilities has been adversely impacted. As a result, delay in realisation of transmission charges from the customers is expected in the next financial year.
The government of India has announced measures to facilitate the liquidation of outstanding dues of the utilities to the generators and transmission licensees which are expected to facilitate the realisation of the company’s trade receivables. Further, the company has adequate credit limits and strong credit ratings to mobilise the required short term funds for its operations including for meeting its debt service obligations.
PGCIL has also approved a consolidated onetime rebate of Rs.1,075 crore to discoms and power departments of states and Union territories against the billing of April and May 2020.
The company will continue to monitor any material changes to future economic conditions, as the impact assessment of COVID-19 is going to be a continuing process.
(This story is based on the notes to accounts accompanying the company’s financial results for FY20. These audited results were taken up at the company’s board meeting on June 20, 2020.)
