Based on the feedback obtained from MoP and the utilities, the parameters used for the rating exercise have undergone a few changes compared to the original exercise. The revised parameters were discussed in the meeting of all the SEBs / utilities convened by the MoP on 4th July 2003 and the views received from the SEBs / utilities were also duly factored in. The rationale underlying the changes can be summed up as follows:

More explicit evaluation of the progress made by utilities towards attaining commercial viability Eliminate parameters which are mandatory, or not within the jurisdiction of individual states, as per the Electricity Act, 2003. This would include issues like setting up of an Electricity Regulatory Commission or enactment of an Anti-Theft legislation Increase the weightage against some key aspects of distribution reforms like Energy Audit and Aggregate Technical and Commercial Losses (ATC) The new parameters introduced were: Progress made in terms of attaining 100% Rural Electrification and Electrification of Households Structural adjustment support provided to the utilities Track record in terms of adding to generation capacity in the state Gap between Average Revenue Realisation (ARR) and Average Cost of Supply (ACS) On an overall basis, the parameters used and the weightages are as follows: The key aspects evaluated under each of the areas can be summed up as follows: State Government {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Regulatory Process {text:list-item} {text:list-item} {text:list-item} {text:list-item} (A negative marks of 5 is assigned to States which are yet to set up an SERC) Business Risk Analysis {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Fnancial Risk Analysis {text:list-item} {text:list-item} {text:list-item} {text:list-item} Others {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Progress in attaining Commercial Viability {text:list-item} {text:list-item} Sustainability of the revenue model of the power sector. 10.{text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} 11.Creation of a competitive environment 12.{text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item}