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methodology. Recoveries against any one time items/ arrears are now disallowed in the calculation of cost coverage ratio. However, in the absence of availability of information pertaining to this change in cost coverage calculation, for most of the discoms, the change could not be incorporated. Key Findings 1. Cost coverage ratio for most entities (33 out of 40 rated) remained low (<0.90) due to substantial increase in expenses and non-cost reflective tariffs 2. The median Cost Coverage has remained stable at 0.80 during the third rating exercise as compared to 0.81 in the second rating exercise. Overall, 15 power distribution entities (out of a total of 40) have shown improvement in their cost coverage ratios 3. Gujarat was the best performer on cost coverage’s. Five power distribution entities have shown more than 15% improvement in this parameter and these include Kerala State Electricity Board Limited, Tripura State Electricity Corporation Limited, Madhyanchal Vidyut Vitran Nigam Limited, Purvanchal Vidyut Vitran Nigam Limited and Kanpur Electricity Supply Company Limited; while South Bihar Power Distribution Company Limited and North Bihar Power Distribution Company Limited have shown more than 10% deterioration in their cost coverage ratio 4. 21 of the rated power distribution entities have shown an improvement in their Aggregate Technical & Commercial (AT&C) loss levels during FY 2014 (over the previous year) 5. The median loss level has declined to 25.08% in the current rating exercise from 26.19% in the second rating exercise, after coming down from 26.55% in the first rating exercise 6. Eight utilities have been able to achieve more than 20% reduction in this parameter and these include Dakshin Gujarat Vij Company Limited , Uttar Gujarat Vij Company Limited, Paschim Gujarat Vij Company Limited , Madhyanchal Vidyut Vitran Nigam Limited, Dakshinanchal Vidyut Vitran Nigam Limited , Paschimanchal Vidyut Vitran Nigam Limited, Purvanchal Vidyut Vitran Nigam Limited and Chamundeshwari Electricity Supply Corporation Limited 7. Ten utilities including Uttarakhand Power Corporation Limited, Chhattisgarh State Power Distribution Company Limited, Eastern Power Distribution Company of AP Limited, Himachal Pradesh State Electricity Board Limited, Southern Power Distribution Company of Telengana Limited, Northern Power Distribution Company of Telangana Limited, Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited, Tripura State Electricity Corporation Limited & Ajmer Vidyut Vitran Nigam Limited SUMMARY OF RATING PARAMETERS Sr.No Parameters Weightage 1 Fianancial Performance i Coverage Ratio 15 ii AT&C Losses 12,-5 iii Subsidy Support 10,-10 iv Interest Coverage Ratio 5 v Debt Equity Ratio 5,-3 vi Sustainability 9 vii Receivables 4 viii Payablles 3,-3 2 Audited Accounts 5,-12 3 Cross Subsidy 0,-2 4 Reform Measures- Unbundling & Corporatistion 0,-5 5 Regulatory Enviroinment 15,-15 6 Forward Looking Parameters 5,-1 7 Incentive/Bonus Marks 12 Total 100 POWER SECTOR 72 energetica INDIA · MAY | JUN16


energetica-india-57_asiapowerweek
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