Electricity Distribution (Accounts and Additional Disclosure) Rules, 2025.

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-29092025-266511 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 634] NEW DELHI, FRIDAY, SEPTEMBER 26, 2025/ASVINA 4, 1947 MINISTRY OF POWER NOTIFICATION New Delhi, the 25th September, 2025 G.S.R. 718(E).—In pursuance of sub-section (1) and clause(z) of sub-section (2) of section 176 of the Electricity Act, 2003 (36 of 2003) read with second proviso to sub-section (1) of section 129 of the Companies Act, 2013 (18 of 2013) and in supersession of the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2024, dated the 10th October, 2024, and published in Gazette of India vide dated, the 14th October, 2024, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:- 1. Short title and commencement.-(1) These rules may be called the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2025. (2) They shall come into force from 01st April, 2026. 2. Applicability.-These rules shall be applicable to Specified Entity. 3. Definition-(1) In these rules, unless the context otherwise requires,- (a) "Act" means the Electricity Act, 2003 (36 of 2003); (b) "Additional Disclosure Statements" means the statements disclosing particulars as provided in Schedule annexed to these rules; (c) "Companies Act" means the Companies Act, 2013 (18 of 2013); (d) "Financial Statement" means Financial Statements referred to in clause (40) of section 2 read with section 129 of the Companies Act; (e) "financial year" means the financial year referred to in clause (41) of section 2 of the Companies Act; (f) "Schedule" means the Schedule annexed to these rules; (g) "Specified Entity" means distribution licensee under the Act excluding Military Engineering Services, Municipal Corporations or Councils, Ports or Trusts, Transport Undertakings, Damodar Valley Corporation, Government Departments not incorporated under the Companies Act, 2013 (18 of 2013), entity solely engaged in distribution of power in Special Economic Zones or any other entity exempted in this regard by the Central Government; (h) "tariff subsidy" means the subsidy provided by the State Government to any specified entity for sale of power at subsidised rates to certain categories of consumers as defined under section 65 of the Act; (i) "trade receivable” means an amount receivable on the account of sale of power or related services rendered in the normal course of business. (2) The words and expressions used herein and not defined in these rules, shall have the meanings respectively assigned to such words and expressions in the Act or the Companies Act or the rules made there under, as the case may be. 4. Recognition of regulatory deferral account balances or income recoverable from future tariff.-(1) For claims or sums to be recoverable through tariff, if any, the Specified Entity shall recognise regulatory deferral account balances or income recoverable from future tariff in its Financial Statement in accordance with applicable Accounting Standards and Guidance note on Accounting for Rate Regulated activities. (2) The Specified Entity shall review the estimated amount expected to be recovered, refunded or adjusted at least at the end of financial year to reflect the current best estimates. (3) If expectation differs from previous estimates, the changes should be accounted for as change in accounting estimates in accordance with relevant requirements of applicable Accounting Standard. (4) The Specified Entity shall follow the norms, mentioned below in Table, at minimum, for impairment of such claim or sum recognised in Financial Statement for which approval for recovery is not available from competent authority:- TABLE Age: due from year of recognition per. cent provisioning (1) (2) More than 3 years and less than or equal to 5 years 25% More than 5 years and less than or equal to 7 years 50% More than 7 years 100%; Provided that where Specified Entity has not filed a petition or appeal in the appropriate Forum for pass through to the consumers within the time limit, as per laws, for the time being in force, for claiming such claims or sums recognised in such Financial Statement, the Specified Entity, shall provision such balances at 100 per. cent in the year of expiry of such time limit. Explanations: for the purpose of this notification, it is clarified that:- (a) above provisioning norms shall be applicable for balances arising after 1st April 2026 onwards; (b) for balances appearing in the Financial Statement as on 31st March 2026, the Specified Entity shall apply above provisioning norms assuming 31st March 2026 as the year of recognition of such balances; and (c) Forum means Appropriate Commission or Appellate court. (5) The Specified Entity shall disclose the basis on which such claims or sums are measured initially and subsequently, including how such amounts are assessed for recoverability and how impairment loss is allocated. (6) tariff subsidy shall be recognised and accounted for as per the relevant rules made under the Act. 5. Provisioning of trade receivables.-The minimum provisioning requirement for a Specified Entity on its trade receivables from all category of consumers in the Financial Statements shall be as Table below: Table Serial Trade receivables outstanding for following periods per. cent provisioning number from due date of payment financial financial financial year 2026- year 2027- year 2028- 27 28 29 and onwards (1) (2) (3) (4) (5) 1. 0 and up to 90 days 2. Exceeding 90 days and up to 180 days 5% 10% 15% 3. Exceeding 180 days and up to 1 year 20% 25% 30% 4. Exceeding 1 year and up to 2 years 35% 40% 45% 5. Exceeding 2 years and up to 3 years 55% 60% 75% 6. More than 3 years 75% 80% 100% 7. dues from permanently disconnected consumers 75% 75% 75%: Provided that nothing contained in this rule shall apply to:- (i) trade receivables from Government Consumers; or (ii) Specified Entity having trade receivable days less than or equal to ninety days on aggregate basis: Provided further that the appropriate Commission may set a higher provisioning requirement on the recommendations of a Committee set up by the State Government which shall consist of Principal Secretary (Power), the Principal Secretary (Finance) and the Chairman or Managing Director or both of the Specified Entity as members. Explanation.-For the purposes of this rule, the expressions,- (i) Government consumers means the departments, urban local bodies, rural local bodies, public sector undertakings and the like owned or belonging to the State Government and the Central Government; and (ii) Trade receivable days means trade receivables at the end of the financial year divided by average revenue per day. 6. Content and form of Additional Disclosure Statements-(1) In addition to the statutory disclosures as mandated under the Companies Act, the Specified Entity shall also prepare the Additional Disclosure Statements for each financial year in the form and manner as provided in the Schedule. Explanation.-For the purposes of this rule, it is hereby clarified that the Additional Disclosure Statements are required to be prepared for the power related business of the Specified Entity. (2)The Additional Disclosure Statements shall be part of the Financial Statements prepared by the Specified Entity and are to be annexed to the Financial Statements as the last disclosure titled 'Additional Disclosure Statements' under the notes to accounts of the Financial Statements: Provided that in the first year of preparation of Additional Disclosure Statements, the Specified Entity shall have the option to include Additional Disclosure Statements either in the annual report or in the Financial Statements. (3)The Additional Disclosure Statements shall comprise the following statements as annexed to this rule, namely:- (i) supplementary disclosures to Financial Statements; (ii) statement of Average Cost of Supply-Average Revenue Realised gap; and (iii) statement of Aggregate Technical and Commercial loss. Explanation.-For the removal of doubts, it is hereby clarified that for the financial year 2026-27 preparation of Additional Disclosure Statements, comparative figures of previous financial year shall be optional. 7. Statement of compliance.-A statement of compliance shall be given by the management of Specified Entity at the beginning of the Additional Disclosure Statements confirming that the Additional Disclosure Statements are prepared and presented in the form and manner provided in the Schedule. Schedule: Additional Disclosure Statements (ADS) ADS 1: Supplementary disclosures to Financial Statements 1. Revenue from operations: Particulars For the year ended For the year ended 31st March, 20.. 31st March, 20.. (current year) (previous year) (1) (2) (3) (a) Revenue from sale of energy Sale of power to own consumers (Low Tension (LT), High Tension (HT) and Extra High Tension (EHT)) Fuel Adjustment Charge (FAC)/ Fuel Cost Adjustment (FCA)/ Fuel and Power Purchase Cost Adjustment (FPPCA)/ Power Purchase Adjustment Charge (PPAC) Sale to Distribution Franchisee Sale of power to others (such as inter-State sale/ energy traded/Unscheduled Inter-change (UI)/Deviation Settlement Mechanism (DSM)/inter DISCOM sale, etc.) Other receipts from consumers (such as meter rents, service rentals, recoveries for theft of power and malpractices, etc.) (i) Total Less: rebate to consumers (if any, other than cash discount) (ii) Revenue from sale of energy without tariff subsidy (i-ii) Electricity duty/ other taxes billed to consumers Electricity duty/ other taxes payable to Government Sub-total of revenue from sale of energy (b) Other operating income Wheeling charges Open access charges Others (c) Subsidy payable by State Government in accordance with the relevant rules as per the number of units supplied to subsidized categories according to energy accounts multiplied by the per unit subsidy Subsidy received Subsidy yet to be received Total revenue from operations (a + b + c) 2. Details of revenue from sale of energy: For the year ended 31st March, 20.. (For Current and Previous Year) Particulars Energy Energy Gross Revenue sold - sold - un- energy sold from sale of Tariff Tariff metered metered (MU) energy subsidy subsidy (MU) (MU) without billed received tariff (out of subsidy (6)) (1) (2) (3) (4)=(2)+(3) (5) (6) (7) Domestic Commercial Agricultural Industrial Others: Public street lighting Public water works Railways Bulk supply Distribution franchisee Inter-State sale/ energy traded/UI/DSM Others (may specify nature) (i) Total Out of (i) above, related to Government consumers State Government consumers Central Government consumers 3. Details of number of consumers: As on 1st April 20.. For the year ended 31st March, 20.. (For Current and Previous Year) As on 31st March 20.. Particulars Number Number Number Total no. Number Number Number Number Number Number Number Total no. of of of of of of of of of of of of consumer consumer consumer consumer consumer consumer consumer consumer consumer consumer consumer consumer s - pre- s - other s - un- s s added - s added - s added - s of s - pre- s - other s - un- s paid meters metered pre-paid other un- permanentl paid meters metered meters meters meters metered y meters disconnecte d (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Domestic Commercial Agricultural Industrial Others: Public street lighting Public water works Railways Bulk supply Miscellaneous Total 4. Details of cross subsidy: For the year ended 31st March, 20.. (For Current and Previous Year) Particulars Average Notified Notified Gross Revenue Average Cross Cost of tariff subsidy energy from sale Billing Rate subsidy Supply (MU) sold of energy (ABR) (Rs./kWh) (ACOS) (MU) without (Rs./kWh) (ACOS - (Rs./kWh) tariff ABR) subsidy (Rs. Crore) (1) (2) (3) (4) (5) (6) (7)=(6)/(5) (8)=(2)-(7) Domestic Commercial Agricultural Industrial Others: Public street lighting Public water works Railways Bulk supply Miscellaneous Total Note: (i)In column (2) Average Cost of Supply (ACoS) means total expenses as per statement of profit and loss divided by gross energy sold; (ii) In column (3) Notified tariff means the tariff applicable to the consumer category as per the relevant tariff order; (iii)In column (5) Gross energy sold (MU)means aggregate of metered and unmetered energy sale to all category of consumers. Energy traded or unscheduled interchange or inter-State sale of power to be included. Open access or wheeling units shall not be included. 5. Gross trade receivables: As at 31st March, 20.. As at 31st March, 20.. Particulars (current year) (previous year) Current Non- Total Current Non- Total current current (1) (2) (3) (4) (5) (6) (7) For sale of power to own consumers (LT, HT and EHT) For sale to distribution franchisee For sale of power to others (such as inter-State sale/energy traded/UI/DSM/inter DISCOM sale, etc.) Electricity duty/ other taxes Late payment surcharge Others (i) Total Out of (i) above, related to Government consumers State Government departments Central Government departments 6. Details of borrowings: Particulars As at 31st March, 20.. As at 31st March, 20.. (current year) (previous year) Ope Addit Due Repay Closin Ope Addit Due Repay Clos ning ions for ments g ning ions for ments ing bala pay balanc bala pay bala nce ment e nce ment nce (11) (1) (2) (3) (4) (5) (6)=(2) (7) (8) (9) (10) = +(3)- (7)+ (5) (8)- (10) Borrowings(bifurcate between secured and un-secured) Long term loans – banks/NBFC/ (a) others (specify name along with purpose of loan) (i) (ii) (n...) Long term loans – Government(speci (b) fy name along with purpose of loan) (i) (ii) (n...) Short term loans – banks/NBFC/othe (c) rs(Specify name along with purpose of loan) (i) (ii) (n...) Bonds (specify name of bonds (d) along with purpose of loan) (i) (ii) (n...) Total borrowing: secured Total borrowing: un-secured Total borrowing (secured + un-secured) Note: In column (2), (6), (7) and (11) opening balance and closing balance of borrowings in above table reflects total borrowings including current maturities of long-term borrowings. ADS 2: Statement of Average Cost of Supply (ACS) -Average Revenue Realised (ARR) gap: Serial Parameter Units Description For the year For the number ended year 31st March, ended 20.. 31st (current March, year) 20.. (previous year) (1) (2) (3) (4) (5) (6) (i) Gross input energy MU SE's own generation - auxiliary consumption + energy purchased (Gross) (ii) Total expenses Rs. Total expenses as per statement crore of profit and loss(including extraordinary expenses & provisions) (iii) Total revenue Rs. Total revenue as per statement crore of profit and loss (iv) Average Cost of Rs/kwh (ii)*10/A Supply (ACS) (v) Average Realizable Rs/kwh (iii)*10/A Revenue (ARR) (vi) ACS - ARR gap Rs/kwh (iv)-(v) (vii) Adjusted total Rs. As per note below revenue crore (viii) Adjusted Average Rs/kwh (vii)*10/A Realizable Revenue (ARR) (ix) Adjusted ACS - Rs/kwh (iv)-(viii) ARR Gap Note: (i) In column (2) gross input energy means sum of energy purchased and special entity's own generation, if any (net of auxiliary consumption); (ii) In column (2) adjusted total revenue to be calculated as below: Particulars For the year ended For the year ended 31st March, 20.. 31st March, 20.. (current year) (previous year) (1) (2) (3) Total revenue as per statement of profit and loss Adjustments of items included in total revenue above Less: tariff subsidy billed and not received Less: increase in gross trade receivables Add: decrease in gross trade receivables Less: Income recoverable from future tariffs (like net movement Regulatory Deferral Balances) Less: other Government subsidy/ grant of revenue nature (if included in total revenue but not received) Less: Government grants of capital nature (if included in total revenue) Adjusted total revenue ADS 3: Statement of Aggregate Technical and Commercial (AT&C) loss: S.No. Parameter Unit Description For the year For the ended year 31st March, ended 20.. 31st (current March, year) 20.. (previous year) (1) (2) (3) (4) (5) (6) A Gross input energy MU SE's own generation - auxiliary consumption + energy purchased (gross) B1 Inter-State sale/ energy MU traded/UI B2 Transmission losses MU C Net input energy MU C= A-B1-B2 D Energy sold MU Energy sold to all categories of consumers excluding units of energy traded/ inter-State sales/UI E1 Revenue from sale of energy Rs Revenue from sale of energy crore to all categories of consumers (including tariff subsidy booked) but excluding revenue from energy traded/ inter-State sales/ UI E2 Adjusted Revenue from sale Rs. Revenue from sale of energy of energy on tariff subsidy crore (same as E above) minus received basis Tariff Subsidy Booked plus Tariff Subsidy received against Tariff subsidy booked during the year F Opening trade receivable Rs. Gross opening trade receivable crore as per trade receivable schedule. G Closing trade receivables Rs. (i)Gross closing trade crore receivables as per trade receivable note (ii) Any amount written off during the year directly from (i) H Adjusted closing trade Rs. G(i)+G(ii) receivable for sale of energy crore I Collection efficiency % (E2+F-H)*100/E1 (1) (2) (3) (4) (5) (6) J Billing efficiency % Value to be taken from Additional Disclosure Statement 2 K Units realized MU D*I L Units un-realized MU C-K M AT&C losses % L*100/C Note:(i) In column (2) collection efficiency to be capped at 100%. (ii) For calculation of AT&C loss, revenue and trade receivables shall include only: (a)Sale of power to LT, HT and EHT consumers net of rebate to consumers; (b)Other receipts from consumers (such as meter rents, service rentals, recoveries for theft of power and malpractices, etc.); (c)FAC/FCA/FPPCA/PPAC. (iii) For calculation of AT&C loss, revenue and trade receivables shall exclude: (a) Electricity duty/other taxes; (b) Wheeling of energy; (c) Open access sale; (d) Sale of power through inter-State sale/ energy traded/UI/DSM/ inter DISCOM sale; (e) Delayed payment surcharge/ late payment surcharge. [F. No.06/03/2021-UR&SI-II(E-258363)] SRIKANT NAGULAPALLI, Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. GORAKHA NATH YADAVA Digitally signed by GORAKHA NATH YADAVA Date: 2025.09.29 15:32:04 +05'30°