Lok Sabha Question No. 1310 (UNSTARRED), answered on 2017-02-09
Subject: Gap between Power Generation Cost and Consumer Electricity Charges
Ministry: POWER
Asked by: ANANT KUMAR DATTATREYA HEGDE

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1310 TO BE ANSWERED ON 09.02.2017

## GAP BETWEEN POWER GENERATION COST AND CONSUMER ELECTRICITY CHARGES

†1310.  SHRI ANANTKUMAR HEGDE:

Will the Minister of POWER be pleased to state:

- (a) whether there is a huge gap between the average power generation cost and the price at which consumers purchase power;
- (b) if so, the details thereof; and
- (c) the  average  power  generation  cost  through  various  sources  and  the minimum/ maximum price at which power is sold to the consumers in each State, State-wise?

## A N S W E R

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

( SHRI  PIYUSH GOYAL )

(a) to (c) : There exists a gap between cost of generation/generation tariff and sale price/cost of supply to the end consumer.  This is due to the fact that the cost of  supply to the end consumers include, in addition to the generation tariff, the  transmission  charges,  transmission  losses,  distribution  network  charges, distribution losses and commercial losses etc. As per information made available  by  Central  Electricity  Authority  (CEA),  the  all  India  average  cost  of power  generation  through  Thermal,  Hydro  and  Nuclear  Power  Stations  for  the year 2014-15 are as under:

| Power Station   |   Average cost of Generation (in paise/KWh) |
|-----------------|---------------------------------------------|
| Hydro           |                                         241 |
| Thermal         |                                         333 |
| Nuclear         |                                         276 |

As per information made available by CEA, the state-wise and utilitywise gap of cost of generation of power and the cost of consumer purchase price is given at Annex .

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## ANNEX  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  UNSTARRED  QUESTION NO.1310 TO BE ANSWERED IN THE LOK SABHA ON 09.02.2017.

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| Power Generation cost & consumer Purchase Price Details for 2014-15   | Power Generation cost & consumer Purchase Price Details for 2014-15   | Power Generation cost & consumer Purchase Price Details for 2014-15   | Power Generation cost & consumer Purchase Price Details for 2014-15                                   | Power Generation cost & consumer Purchase Price Details for 2014-15   | Power Generation cost & consumer Purchase Price Details for 2014-15   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| Region                                                                | State                                                                 | Utility                                                               | Power Purchase cost of Distribution Company /Power Generation cost of Generating Company (In Rs/Unit) | Average consumer Purchase Price/Average Cost of Supply (in Rs./Unit)* | GAP (in Rs/Unit)                                                      |
| Eastern                                                               | Bihar                                                                 | NBPDCL                                                                | 4.23                                                                                                  | 5.11                                                                  | 0.88                                                                  |
| Eastern                                                               |                                                                       | SBPDCL                                                                | 4.21                                                                                                  | 4.79                                                                  | 0.58                                                                  |
| Eastern                                                               | Jharkhand                                                             | JBVNL                                                                 | 4.32                                                                                                  | 4.68                                                                  | 0.36                                                                  |
| Eastern                                                               | Odisha                                                                | CESU                                                                  | 2.83                                                                                                  | 3.89                                                                  | 1.06                                                                  |
| Eastern                                                               | Odisha                                                                | NESCO                                                                 | 3.02                                                                                                  | 4.01                                                                  | 0.99                                                                  |
| Eastern                                                               | Odisha                                                                | SESCO                                                                 | 2.08                                                                                                  | 3.81                                                                  | 1.73                                                                  |
| Eastern                                                               | Odisha                                                                | WESCO                                                                 | 3.07                                                                                                  | 4.09                                                                  | 1.02                                                                  |
| Eastern                                                               | Sikkim                                                                | sikkimPD                                                              | 1.90                                                                                                  | 4.46                                                                  | 2.56                                                                  |
| Eastern                                                               | West Bengal                                                           | WBSEDCL                                                               | 3.91                                                                                                  | 4.92                                                                  | 1.01                                                                  |
| North Eastern                                                         | Arunachal Pradesh                                                     | Arunachal PD                                                          | 2.64                                                                                                  | 5.49                                                                  | 2.85                                                                  |
| North Eastern                                                         | Assam                                                                 | APDCL                                                                 | 4.20                                                                                                  | 5.48                                                                  | 1.28                                                                  |
| North Eastern                                                         | Manipur                                                               | MSPDCL                                                                | 3.52                                                                                                  | 4.51                                                                  | 0.99                                                                  |
| North Eastern                                                         | Meghalaya                                                             | MePDCL                                                                | 4.83                                                                                                  | 6.18                                                                  | 1.35                                                                  |
| North Eastern                                                         | Mizoram                                                               | Miziram PD                                                            | 3.62                                                                                                  | 6.26                                                                  | 2.64                                                                  |
| North Eastern                                                         | Nagaland                                                              | Nagaland PD                                                           | 3.31                                                                                                  | 5.88                                                                  | 2.57                                                                  |
| North Eastern                                                         | Tripura                                                               | TSECL                                                                 | 1.99                                                                                                  | 4.12                                                                  | 2.13                                                                  |
| Northern                                                              | Delhi                                                                 | BSES Rajdhani                                                         | 5.95                                                                                                  | 7.16                                                                  | 1.21                                                                  |
| Northern                                                              |                                                                       | BSES Yamuna                                                           | 6.38                                                                                                  | 7.78                                                                  | 1.40                                                                  |
| Northern                                                              | Haryana                                                               | DHBVNL                                                                | 4.32                                                                                                  | 4.90                                                                  | 0.58                                                                  |
| Northern                                                              |                                                                       | UHBVNL                                                                | 4.37                                                                                                  | 5.41                                                                  | 1.04                                                                  |
| Northern                                                              | Himachal Pradesh                                                      | HPSEB Ltd.                                                            | 2.99                                                                                                  | 4.84                                                                  | 1.85                                                                  |
| Northern                                                              | Jammu & Kashmir                                                       | J&K PDD                                                               | 3.75                                                                                                  | 4.20                                                                  | 0.45                                                                  |
| Northern                                                              | Punjab                                                                | PSPCL                                                                 | 2.58                                                                                                  | 4.89                                                                  | 2.31                                                                  |
| Northern                                                              |                                                                       | AVVNL                                                                 | 4.11                                                                                                  | 6.41                                                                  | 2.30                                                                  |
| Northern                                                              | Rajasthan                                                             | JDVVNL                                                                | 4.04                                                                                                  | 5.93                                                                  | 1.89                                                                  |
| Northern                                                              | Rajasthan                                                             | JVVNL                                                                 | 4.00                                                                                                  | 5.84                                                                  | 1.84                                                                  |
| Northern                                                              |                                                                       | DVVN                                                                  | 4.55                                                                                                  | 6.13                                                                  | 1.58                                                                  |
| Northern                                                              |                                                                       | KESCO                                                                 | 4.58                                                                                                  | 6.03                                                                  | 1.45                                                                  |
| Northern                                                              | Uttar Pradesh                                                         | MVVN                                                                  | 3.99                                                                                                  | 5.49                                                                  | 1.50                                                                  |
| Northern                                                              |                                                                       | Poorv. VVN                                                            | 4.55                                                                                                  | 5.82                                                                  | 1.27                                                                  |
| Northern                                                              |                                                                       | Pashci. VVN                                                           | 4.54                                                                                                  | 5.19                                                                  | 0.65                                                                  |
| Northern                                                              | Uttarakhand                                                           | Ut PCL                                                                | 3.02                                                                                                  | 3.85                                                                  | 0.83                                                                  |

............2.

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|          | Andhra Pradesh   | APEPDCL                 |   4.46 |   5.66 |   1.20 |
|----------|------------------|-------------------------|--------|--------|--------|
|          |                  | APSPDCL                 |   4.38 |   5.49 |   1.11 |
|          |                  | BESCOM                  |   3.97 |   4.6  |   0.63 |
|          |                  | CHESCOM                 |   3.43 |   4.14 |   0.71 |
|          | Karnataka        | GESCOM                  |   3.24 |   4.33 |   1.09 |
| Southern |                  | HESCOM                  |   3.42 |   4.38 |   0.96 |
|          |                  | MESCOM                  |   3.54 |   4.73 |   1.19 |
|          | Kerala           | KSEB Ltd.               |   3.04 |   5.23 |   2.19 |
|          | Puducherry       | Puducherry PD           |   3.18 |   3.58 |   0.4  |
|          | Tamil Nadu       | TANEDCO                 |   3.59 |   6.47 |   2.88 |
|          | Telangana        | TSNPDCL                 |   4.5  |   5.58 |   1.08 |
|          |                  | TSSPDCL                 |   4.4  |   5.23 |   0.83 |
|          | Chhattisgarh     | CSPDCL                  |   3.25 |   4.15 |   0.9  |
|          | Goa              | Goa PD                  |   2.9  |   3.57 |   0.67 |
|          |                  | DGVCL                   |   4.9  |   5.2  |   0.3  |
|          |                  | MGVCL                   |   4.19 |   4.9  |   0.71 |
|          | Gujarat          | PGVCL                   |   3.3  |   3.78 |   0.48 |
|          |                  | UGVCL                   |   3.59 |   4.06 |   0.47 |
| Western  |                  | MP Madhya Kshetra VVCL  |   3.73 |   5.03 |   1.3  |
|          | Madhya Pradesh   | MP Paschim Kshetra VVCL |   3.74 |   4.34 |   0.6  |
|          |                  | MP Puru Kshetra VVCL    |   4.12 |   5.13 |   1.01 |
|          | Maharashtra      | MSEDCL                  |   4.36 |   5.15 |   0.79 |

* Without subsidy

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