Lok Sabha Question No. 1535 (UNSTARRED), answered on 2022-12-15
Subject: Power Tariff
Ministry: POWER
Asked by: D.K. Suresh

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1535

## ANSWERED ON 15.12.2022

## POWER TARIFF

1535.  SHRI D.K. SURESH:

Will the Minister of POWER be pleased to state:

- (a) whether it is true that the power tariff in the country is higher compared to other countries;
- (b) if so, the details thereof;
- (c) whether tariff fixation has any bearing of World Bank policies; and
- (d) if so, the details thereof?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (d) : As per the provisions given in Sections 61 to 64 of the Electricity Act, 2003, the  Appropriate  Electricity  Regulatory  Commission  determines  the  electricity  tariff  for supply of electricity by a generating company to a distribution licensee, transmission of electricity,  wheeling  of  electricity  and  retail  sale  of  electricity.  Section  61  of  the Electricity  Act,  2003  and  the  tariff  policy  provide  the  guiding  principles  and  the  terms and conditions for determination of tariff by the Appropriate Commission.

The  electricity  tariff  varies  from  State  to  State  under  various  categories depending  upon  the  cost  of  supply  of  electricity,  tariff  norms  and  the  subsidy,  if  any, provided for any class of consumers. Similarly, the electricity tariff in other developing /developed countries depends upon the energy mix, electricity market structure, rules & regulations thereof prevailing in that country.

However, for domestic consumers up to 2 kW, the minimum and maximum tariff  across  various  States  in  2020-21  from  Rs.1.80  per  kWh  to  Rs.8.58  per  kWh respectively, which works out to 0.0246 USD per kWh  and 0.117 USD per kWh (assuming exchange  rate  of  1  USD=Rs.73.03  as  on  1 st January  2021).  In case  of  Industrial consumers,  the  minimum  and  maximum  tariff  across  various  States  in  2020-21  was Rs.3.50 per kWh and Rs.11.51 per kWh respectively, which works out to 0.048 USD per kWh    and  0.157  USD  per  kWh  (assuming  exchange  rate  of  1  USD=Rs.73.03  as  on  1 st January 2021)

........2.

The electricity tariff data for select countries as per information available on  International  Energy  Agency  (IEA)  website  in  USD  per  kWh  for  2021  is  tabulated below:

|   Sl. No. | Name of the country   |   Domestic/Household Electricity tariff (USD per kWh) |   Industry Electricity tariff (USD per kWh) |
|-----------|-----------------------|-------------------------------------------------------|---------------------------------------------|
|         1 | Canada                |                                                 0.109 |                                       0.089 |
|         2 | Chile                 |                                                 0.18  |                                       0.164 |
|         3 | Japan                 |                                                 0.255 |                                       0.161 |
|         4 | Korea                 |                                                 0.103 |                                       0.094 |
|         5 | United Kingdom        |                                                 0.235 |                                       0.157 |
|         6 | United States         |                                                 0.131 |                                       0.066 |

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