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Press Information Bureau
Government of India
Ministry of Power
27-April-2012 16:30 IST
Cost of Supply of Electricity

 

As per the ‘Report on Performance of State Power Utilities’ published by the Power Finance Corporation (PFC) based on the data given in the Annual Accounts of State Electricity Boards/unbundled utilities  and Annual Resource Plans submitted to the Planning Commission by State Power Departments, the average cost of supply (ACS) of the utilities selling directly to consumers  during the  last five  years is as under:

 

 

2005-06

2006-07

2007-08

2008-09

2009-10

CAGR

Average Cost of Supply

(ACS) (Rs./kwh)

2.57

2.75

2.93

3.41

3.54

8.36%

 

Compound Annual Growth Rate (CAGR) for annual cost of supply in the last five years is 8.36%.

 

Increase in tariff of different categories of consumers in various states is not uniform hence cannot be quantified accurately.  However, the Average Revenue Realized (ARR) which is one such indicator for increase in power tariff, calculated without subsidy on input energy basis as per the report published by the PFC is as under:

 

 

2007-08

2008-09

2009-10

CAGR

Average revenue realized (without subsidy) (Rs./kwh)

2.39

2.62

2.68

5.85%

 

            ARR (without subsidy) has increased with a CAGR of 5.85% over the period 2007-08 to 2009-10.

 

The losses made by utilities selling directly to consumers during the past three years are as under:           

                                                                                          Rs. In Crore

 

2007-08

2008-09

2009-10

Profit/(Loss) after tax on accrual basis

(14,751)

(22,607)

(27,489)

Profit/(Loss) on subsidy received basis

(17,620)

(35,762)

(42,415)

 

            The main reasons for poor financial health of State Power Utilities include non-revision of tariff/inadequate tariff increase, non-payment of subsidy amount, high technical and commercial losses etc.

 

This information was given by the Minister of State for Power Shri K. C. Venugopal  in a written reply to a question in Lok Sabha today.

 

MA/KT/VN