Take heart, the state is no more at the rock bottom on the power distribution front. Uttar Pradesh has “displaced” it.

Of the 39 state utilities, Bihar State Power Holding Company Limited (BSPHCL) has been rated 26th in the first annual integrated rating of the units. Union ministry of power conducted it through independent credit rating agencies ICRA and Care Credit.

The parameters taken into account by the two credit rating agencies were financial performance, audited accounts, cross subsidy, reform measures, regulatory environment, forward looking parameters and incentives. The total marks were 100. The undertakings scoring 80 and above were given A+ grading, which stands for very high operational and financial performance capacity. Those scoring between 65 and 80 were placed in A-grade — high operational and financial performance.

Those in the bracket of 50 and 65 were given B+ grading, an indicator of moderate performance. Those getting B-grade (score between 35 and 50) were considered below-average performers. The firms awarded C+ (score between 20 and 35) were considered low performers. Four undertakings getting C grade and scoring less than 20 were considered very low performers.

BSPHCL was awarded B-grade. In contrast, all the four power distribution companies in Gujarat were awarded A+ grade. Yet, the authorities appeared happy over the marginal improvement of the state on the power front. State power minister Bijendra Prasad Yadav said: “We still consider it (B-grade) an improvement considering that we were previously at the bottom. Now, 13 undertakings are behind us. After the power situation improves in the coming years, our rating would improve further.”

The credit agencies observed that the progress in terms of reforms and restructuring of the BSPHCL had been satisfactory. They noted that the functioning of Bihar Electricity Regulatory Commission had been effective.

The credit agencies pointed out that recovery of costs by the BSPHCL through collected revenue was less than 80 per cent. They were also alarmed by the high transmission loss and rampant un-metered consumption of electricity.

“These have to be improved if the company wants to rank better in the future,” said an official of the BSPHCL.