K.J. George at a meeting in Bengaluru. File image.
Bengaluru: More accurate meter readings, stronger recovery of dues and lower borrowing costs helped BESCOM record a ₹293.62-crore profit in the 2025-26 financial year, with the electricity distributor crediting both improved revenue collection and tighter spending for the result.
The company’s financial performance and the measures behind the profit were presented at its 144th board meeting, chaired by Energy and Tourism Minister K.J. George.
George said better management of power purchases, reduced finance costs and stronger financial discipline had worked alongside increased collections. Revenue growth and expenditure control had been given equal priority, he said.
Probe readings help capture an additional 100 million units
A key revenue measure was the use of probe-based meter reading, which George said reduced staff intervention and improved billing accuracy. The minister said the system had helped account for about 100 million additional units of electricity sales and enabled more accurate recording of maximum demand.
BESCOM is also working towards 100% billing efficiency in the commercial and industrial consumer segments, which generate higher revenue, he said.
Recovery of dues and closer revenue monitoring
The company pursued legal and regulatory cases involving substantial outstanding amounts to recover revenue due to it. George said this included receipts from fixed charges, cross-subsidy surcharge and additional surcharge.
Regular reviews of average revenue realisation helped the company monitor collections, prepare better tariff-revision proposals and take financial decisions, according to the minister.
Power-purchase management reduces payment charges
On expenditure, George said BESCOM had managed power purchases more efficiently and paid old dues in instalments to reduce the burden of late-payment surcharge.
The company also recovered eligible FPPCA amounts and made effective use of advance-payment rebates offered by power-generation companies, he said.
Loan restructuring lowers interest costs
Restructuring loans carrying higher interest rates reduced finance costs and improved cash management, George said. He added that BESCOM had not defaulted on its loan repayments.
BESCOM Managing Director Dr. N. Shivashankar attributed the profit to sustained measures to recover outstanding revenue, control expenditure and strengthen financial management.
He said billing efficiency, cost reductions and disciplined financial management had made a significant contribution to the company’s performance.
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