Lok Sabha Question No. 4516 (UNSTARRED), answered on 2018-03-22
Subject: Generation and Selling Price of Power
Ministry: POWER
Asked by: P.R. SUNDARAM, SUPRIYA SADANAND SULE, RAJEEV SHANKARRAO SATAV, DHANANJAY BHIMRAO MAHADIK, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF POWER

LOK SABHA UNSTARRED QUESTION NO.4516 TO BE ANSWERED ON 22.03.2018

GENERATION AND SELLING PRICE OF POWER

4516. SHRI P.R. SUNDARAM: SHRIMATI SUPRIYA SULE: SHRI SATAV RAJEEV: SHRI DHANANJAY MAHADIK: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of POWER be pleased to state:

(a) whether there is a huge difference in the power generation cost and its maximum selling price to the consumers in the country, if so, the details thereof and the reasons therefor;

(b) the corrective steps taken by the Government in this regard;

(c) the estimated average power generation cost during the last three years and the minimum and the maximum price of power sold to the consumers during the above said period;

(d) whether the Government has decided that power producers who do not sell electricity at regulated tariffs will not get gas supply and if so, the details thereof; and

(e) the steps taken/proposed to be taken by the Government in this regard?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) to (c) : As  per  the  available  information  in  Central  Electricity  Authority (CEA),  the  average  power  generation  cost  &  average  cost  of  supply  of Distribution Companies during the last three years is as follows:

|                                                           |   2013-14 |   2014-15 |   2015-16 |
|-----------------------------------------------------------|-----------|-----------|-----------|
| Average generation cost (Rs/kWh)                          |      3.45 |      3.67 |      4.43 |
| Average cost of supply of Distribution companies (Rs/kWh) |      5.19 |      5.21 |      5.43 |

.........2.

In  addition  to  the  generation  tariff,  the  cost  of  supply  to  the  end consumers includes the transmission charges, transmission losses, distribution network charges, distribution losses and commercial losses etc. The maximum and minimum price of power sold to consumers during the last three years is as follows:

| Financial Year   |   Maximum Price (Rs./kWh) |   Minimum Price (Rs./kWh) |
|------------------|---------------------------|---------------------------|
| 2013-14          |                      6.26 |                      2.75 |
| 2014-15          |                      7.19 |                      1.9  |
| 2015-16          |                      7.09 |                      1.97 |

Through appropriate policy framework and programmes, the Government is promoting efficiency in generation, transmission and distribution and also supporting strengthening of the distribution and transmission infrastructure  for  reducing  technical  losses. These  measures,  along  with  the policy framework  of discovery of tariff through competitive bidding will contribute towards lowering of tariff rates. The Tariff Policy notified by Central Government also provides for emphasis on reduction in Aggregate Technical & Commercial (AT&C) losses and theft to reduce the operating costs of Discoms.

(d) & (e) : Domestic  natural gas is allocated as per the prevailing gas allocation  policy  and  supplied  depending  upon  the  availability.  The  Liquefied Natural  Gas  (LNG)  is  imported  under  open  general  license  on  terms  and conditions mutually agreed upon between the buyers and sellers and also by gas based power plants.

***********