Adani Electricity Mumbai’s share of Renewable energy procurement increased to 30 percent at end of March 31, 2023. In the last 2 years the company has increased its share of Renewable Energy from 3 percent to 30 percent, the company said in an exchange filing.

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The company has also reported an increase in its Regulatory Asset Base (RAB) from Rs 5,607 crore in FY19 to Rs 7,479 crore in FY22, with a Compound Annual Growth Rate (CAGR) of 10.10 percent. Adani Electricity Mumbai has funded its Capex of Rs 1,310 crore for FY23 entirely through internal accruals, without any debt incurrence.

The Regulatory Asset Base (RAB) is a term used in the energy sector, which refers to the value of assets that a regulated utility is allowed to include in its rate base.

The RAB represents the value of the utility's assets that have been approved by the regulator as being necessary and reasonable for the provision of services to its customers. These assets include investments in infrastructure such as power generation facilities, transmission and distribution networks, and other related assets.

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Further, as on March 31, 2023, Adani Electricity had surplus cash of about Rs 800 crore. Option contracts aggregating to $300 million have been unwounded and converted to fully hedged swaps. Working Capital loan has been reduced to Rs 500 crore (as on March 31, 2023) from Rs 1,045 crore (in December 2022).

According to MERC’s Mid Term Review order AEML will receive an amount of Rs 1,574 crore (Rs 1,496 Cr Principal & carrying cost) towards Approved Past Period Revenue Gap during next 2 years along with carrying cost.

According to Ministry of Power's 11th edition of the 'Annual Integrated Rating and Ranking' of the country's power distribution utilities, Adani Electricity secured the 1st rank with Grade A+ and the highest integrated score of 99.6 out of 100. Adani Electricity Mumbai has topped the list of India's 71 power distribution companies. The list is based on parameters such as overall governance, financial sustainability, performance excellence, and external environment, the company said in a statement on April 11.

Maharashtra Electricity Regulatory Commission (MERC) has recently approved a 5 to 10 percent hike in tariff from April 1. MERC has allowed power distribution companies like BEST, TATA Power, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) and Adani Electricity to increase the tariff. Following this Adani Electricity announced that it will hike tariff by 5 percent for residential users in 2023-24 and by another 2 percent next year which is the lowest tariff hike among all the distribution companies in Maharashtra for the period reviewed under the Multi-Year Tariff mechanism

Adani Electricity Mumbai is a material subsidiary of Adani Transmission. Adani Trans stock is up nearly 1.5 percent in today’s trade, has seen a fall of more than 50 percent year-to-date.

Also Read: Tariff hike: Tata Power vs Adani Electricity — How things stack up