The energy department has taken a step forward towards restructuring Bihar State Electricity Board (BSEB) according to the Electricity Act, 2003 to provide better power services to consumers.

The department on Monday issued a notification to appoint managing directors and shareholders of all five new companies. This was done to get the firms registered under the Companies Act, 1956.

The companies — Bihar State Power (Holding) Company Limited, Bihar State Power Transmission Company Limited, Bihar State Power Generation Company Limited, South Bihar Power Distribution Company Limited, North Bihar Power Distribution Company Limited — would be headquartered in Patna.

BSEB incumbent chairman P.K. Rai would be the chairman-cum-managing director of the holding company, while Tuntun Jha, Lalan Prasad, Rana Awadhesh and V.C. Gupta would head transmission, generation, south and north Bihar distribution companies, respectively.

On the benefits of the restructuring, an official said: “This will ensure smooth and efficient functioning of the power sector. There will be separate companies for generation, transmission and distribution. At present, BSEB does all the things. But with separate companies, a greater responsibility could be fixed for non-performance and it will also ensure fiscal discipline.”

Bihar Jharkhand Rajya Vidyut Parishad Field Kamgar Union general secretary Amrendra Mishra, however, said: “Consumers will get electricity at higher rates once the companies take over. They would work with the sole motive of profit-making. However, that is not the case with the electricity board. At present, the government can help the board provide relief to consumers, but the same would not be the case once these companies start functioning.”