7. ELECTRICITY
competition and hampering overall creation of a liquid and functioning wholesale electricity market, and leading to higher power prices for DISCOMs.
Electricity retail pricing
End-user prices in India are categorised by consumption group and there is a large variety of tariffs in each state, with cross-subsidy between industrial and residential users. DISCOMs have a two-tier tariff with a fixed cost component (operational and capital expenditure) and a variable cost component (fuel supply). Retail prices at state level show a wide range of tariff structures and methodologies, leading to a wide spread of categories. Table 7.4 shows average end-user prices in INR/kWh for the fiscal year 2015/16 for four types of customers: domestic, commercial (non-domestic), agricultural and industrial (average of both high-tension and low-tension type).
Agriculture (around 22% of total sales) is charged a flat tariff with a monthly fee and unmetered power for water pumping. As explained above, India is implementing a DISCOM programme to separate its agricultural feeders and to install meters, as well as to reduce technical losses.
India’s residential retail electricity prices are among the highest in the world, if assessed by purchasing power parity (PPP) (in absolute terms they are very low). Only Brazil and Japan have more expensive power prices (Figure 7.17). However, the average electricity price paid by households is declining on a PPP basis.
Figure 7.17 Residential electricity prices in India and selected countries, 2007-15
USD(PPP)/MWh |
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400 |
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Brazil |
350 |
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India |
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300 |
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Japan |
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250 |
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Australia |
200 |
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Russia |
150 |
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China |
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United States |
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100 |
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Canada |
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50 |
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0 |
2007 |
2009 |
2011 |
2013 |
2015 |
2017 |
IEA 2019. |
2005 |
All rights reserved. |
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Source: IEA (2018c), World Energy Prices 2018.
179
ENERGY SECURITY
IEA. All rights reserved.
7. ELECTRICITY
Table 7.4 Consumer average revenue per unit (INR/kwh), 2015/16
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Region |
State |
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Domestic avg. |
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Commercial avg. |
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Agricultural avg. |
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Industrial avg. |
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Eastern |
Bihar |
3.32 |
6.73 |
3.61 |
6.86 |
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Jharkhand |
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1.38 |
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7.41 |
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0.55 |
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6.10 |
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Odissa |
3.67 |
6.48 |
1.58 |
6.28 |
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Sikkim |
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2.64 |
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4.94 |
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0 |
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5.96 |
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West Bengal |
5.47 |
7.43 |
4.07 |
3.75 |
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North-eastern |
Arunachal Pradesh |
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3.78 |
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4.91 |
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0 |
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3.85 |
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Assam |
3.82 |
7.33 |
6.31 |
6.36 |
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Manipur |
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3.10 |
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3.53 |
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0.73 |
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2.29 |
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Meghalaya |
3.85 |
5.92 |
3.33 |
6.12 |
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Mizoram |
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3.60 |
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6.63 |
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2.00 |
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6.19 |
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Nagaland |
1.93 |
1.93 |
0 |
0.86 |
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Tripura |
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0 |
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0 |
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0 |
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0 |
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Northern |
Delhi |
6.40 |
11.60 |
3.82 |
10.2 |
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Haryana |
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5.60 |
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7.69 |
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0.34 |
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7.36 |
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Himachal Pradesh |
4.02 |
5.71 |
7.29 |
5.70 |
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Jammu & Kashmir |
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1.77 |
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3.21 |
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1.74 |
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1.43 |
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Punjab |
4.54 |
6.95 |
0 |
6.99 |
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Rajasthan |
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4.54 |
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7.03 |
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4.80 |
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6.50 |
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Uttar Pradesh |
3.62 |
9.22 |
1.63 |
8.35 |
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Uttarakhand |
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3.24 |
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5.14 |
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2.52 |
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4.97 |
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Southern |
Andhra Pradesh |
3.23 |
11.42 |
0.30 |
6.56 |
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Karnataka |
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4.43 |
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8.34 |
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0.98 |
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6.68 |
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Kerala |
3.76 |
12.73 |
2.29 |
6.83 |
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Puducherry |
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2.39 |
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5.28 |
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0.26 |
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5.35 |
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Tamil Nadu |
2.82 |
8.84 |
0 |
10.77 |
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Telangana |
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2.73 |
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9.23 |
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0.43 |
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7.98 |
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Western |
Chattisgarh |
3.71 |
4.89 |
3.76 |
7.09 |
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Goa |
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2.06 |
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4.82 |
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1.59 |
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4.52 |
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Gujarat |
5.15 |
5.65 |
2.67 |
6.88 |
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Madhya Pradesh |
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5.04 |
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6.59 |
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1.09 |
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7.09 |
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Maharashtra |
5.80 |
0 |
2.61 |
6.66 |
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Note: avg. = average.
Source: Power Finance Corporation (2016), The Performance of State Power Utilities for the Years 2013-14 to 2015-16, www.pfcindia.com/DocumentRepository/ckfinder/files/Operations/Performance_Reports_of_State_Power_Utilities/1_ ReportonhePerformanceofStatePowerUtilities2013-14to2015-16.pdf.
180
IEA. All rights reserved.