Via a video message, PM Modi urged citizens to turn off electricity and light a candle, diya, or use mobile’s flashlight or torch for 9 minutes on 5th April 9 PM to mark the fight against the pandemic and symbolically end its darkness. He also praised the discipline showcased by people during the lockdown. Number of cases in India as on 2nd April 2020 had crossed 2,000 and deaths were above 50. Complete Coverage: Coronavirus
Crux of the Matter
Dipping Electricity Demand Electricity demand was low during the end of the year 2019 but picked up during January and February. However, it steeply declined in the month of March due to the Coronavirus lockdown. There has been a 21-22% reduction in energy consumption. National electricity demand fell to 2.78 billion units on March 25 from 3.45 billion units before the lockdown. Electricity demand by passenger railways and commercial and industrial sector constitutes 40% of all power consumption and cross-subsidize residential tariffs as well. With the mentioned sectors coming to a complete halt due to the lockdown, and moratorium on the payments due, the already struggling independent power producers will take a hit. As electricity distributors and consumers get a 3-month moratorium on payments, there have been no announcements to help power generation companies.
Extended Relaxation in Tariffs Various state-run electricity boards and private players have decided to cut down tariffs for residential as well as commercial and industrial consumption. Maharashtra State Electricity Distribution Company Limited (MSEDCL) has reduced residential tariff by 5%, whereas Adani and Tata cut it by 12.3% and 19% respectively. For industrial and commercial tariffs, MSEDCL will slash rates by 10-15% and Adani by 20-25%. Maharashtra also announced a three-month moratorium for commercial and industrial electricity consumers on payment of fixed charges. Gujarat has not changed tariff but extended the electricity bill payment date by one and a half month. Gujarat’s Below Poverty line consumers will get a 30% reduction in tariffs. Tariff for agricultural consumers is reduced to 80 paise/unit from Rs. 1.5. Uttar Pradesh has also extended the bill payment date and announced a 1% rebate on payment before the due date.
Electrifying India As per the World Bank report on Energy Progress in 2018, India’s 85% population has access to electricity. As per the government’s Saubhagya dashboard, almost 100% households in India have access to electricity. India’s per capita electricity consumption in 2018 was 1181 kWh. PM Modi’s 9-minute electricity break should result in electricity saivings of 0.02 kWh per capita. Given India’s population of 1.35 billion, this will translate to a saving of 25-30 million kWh. If the average per-unit electricity price for 1kWh is Rs. 6, then the consumers will save (and power generating companies will lose) around Rs. 15-18 crores. At a time when electricity demand has been low due to broader economic slowdown, financials of the power generating companies have dwindled. They await supportive measures by the government.
Curiopedia
Electricity in India – India is the world’s third-largest producer and third-largest consumer of electricity. The national electric grid in India has an installed capacity of 368.79 GW as of 31 December 2019. Renewable power plants, which also include large hydroelectric plants, constitute 34.86% of India’s total installed capacity. During the 2018-19 fiscal year, the gross electricity generated by utilities in India was 1,372 TWh and the total electricity generation (utilities and non utilities) in the country was 1,547 TWh. The gross electricity consumption in 2018-19 was 1,181 kWh per capita. In 2015-16, electric energy consumption in agriculture was recorded as being the highest (17.89%) worldwide. The per capita electricity consumption is low compared to most other countries despite India having a low electricity tariff. India has a surplus power generation capacity but lacks adequate distribution infrastructure. To address this, the Government of India launched a program called “Power for All” in 2016. The program was accomplished by December 2018 in providing the necessary infrastructure to ensure uninterrupted electricity supply to all households, industries, and commercial establishments. More Info
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