Seventh Annual Integrated Ratings of State Power Distribution Utilities as per the Framework approved by Ministry of Power

Ministry of Power had formulated an Integrated Rating Methodology in July 2012 for evaluating
the performance of State Power Distribution utilities on a range of parameters covering operational,
financial, regulatory and reform parameters. The rating exercise is carried out on an annual basis and
presently covers 41 state distribution utilities spread across 22 states. State Power/ Energy
Departments and private sector distribution utilities are however not covered under the integrated rating
exercise. ICRA and CARE are the designated credit rating agencies and have been assigned 21 and 20
utilities respectively. MoP has mandated Power Finance Corporation (PFC) to co-ordinate the rating
exercise.
So far, six integrated rating exercises covering FY 2012, FY 2013, FY 2014, FY 2015, FY 2016 and FY
2017 has been completed. The first integrated ratings were released/declared by MoP in March 2013,
the second in February 2014, the third in August 2015, the fourth in June 2016, the fifth in May 2017
and the last i.e. sixth integrated ratings were released by Hon’ble Minister of State (IC) for Power and
New & Renewable Energy on 3rd July 2018.

Top 10 DISCOMs by Seventh Annual Integrated Ratings of State Power Distribution Utilities

Download   the complete  ranking in PDF

There is not a single discom from uttar pradesh under top 10.
What are the ranking of discoms of uttar pradesh?

• 24. Kanpur Electricity Supply Company Limited
• 31. Paschimanchal Vidyut Vitaran Nigam Limited
• 35. Madhyanchal Vidyut Vitran Nigam Limited
• 36. Purvanchal Vidyut Vitaran Nigam Limited
• 38. Dakshinanchal Vidyut Vitran Nigam Limited

Find the list of all the discoms of India with their ranking:

GRADING SCALE AND GRADES

The parameters that have been used for the rating are as follows:

• OPERATIONAL & REFORM Parameters - 52
  • AT&C Losses - 28, -4
  • Power purchase - 5
  • Cost Efficiency - 6
  • Quality of Service & Digital Payment Facility - 6
  • Access to Supply - 5
  • RPO Compliance - 2
• EXTERNAL Parameters - 15
  • Regulatory - 11, -19
  • Govt. Support - 4
• FINANCIAL Parameters - 33
  • Cost Coverage Ratio - 15
  • Sustainability - 6
  • Receivables - 4
  • Payables - 3
  • Audited Accounts - 5, -12
  • Audit Qualifications - 0, -1
  • Default to Banks / FIs - 0, -2

Scores have been assigned on the basis of performance of state distribution utilities against various
parameters broadly classified under i) Operational & Reform parameters ii) External Parameters and iii)
Financial parameters. The evaluation of certain parameters covers current levels of performance as well
as relative improvement from year to year. The operational and reform parameters viz. AT&C Losses,
The efficiency of Power Purchase cost, digital payment facility, etc. carry weightage of 52%. The financial
parameters viz. cost coverage ratio, payables, receivables, timely submission of audited accounts, etc.
carry weightage of 33%. External parameters relating to the regulatory environment, State Govt. subsidy
support, etc. have been assigned weightage of 15%.
The methodology used in the current rating exercise takes into account the latest modifications in the
rating methodology as approved by the Ministry of Power (MoP) in March 2019. The Integrated Rating
Methodology incorporating these modifications is given in the Appendix. The modifications provide for
the revised benchmark for power purchase cost and auditor's qualifications.
The rating has been based primarily on data submitted by the State distribution utilities / SEBs in
response to questionnaires sent by the rating agencies. Other sources of data accessed include Audited
Accounts, Annual Administrative Reports and Tariff Orders issued by the SERCs.
The data collected, as above, has been supplemented with meetings with key officials of the State
distribution utilities / SEBs