Lok Sabha Question No. 2740 (UNSTARRED), answered on 2022-03-17
Subject: Uniform Electricity Pricing
Ministry: POWER
Asked by: Sanjay Jaiswal

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.2740 ANSWERED ON 17.03.2022

## UNIFORM ELECTRICITY PRICING

2740. DR. SANJAY JAISWAL:

Will the Minister of POWER be pleased to state:

(a) the  details  of  the  current  mechanism  used  to  determine  the  rate  of  electricity borne by the end consumer, both residential and commercial;

(b) whether the Government provides subsidy on electricity to backward States like Bihar;

(c) if  so,  the  details  of  such  subsidies  provided  during  the  last  three  years  and the current year;

(d) whether  the  Government  proposes  to  implement  Uniform  Electricity  Pricing throughout the country and if so, the details thereof;

(e) whether  the  Government  has  estimated  the  total  savings  that  can  be  achieved through Uniform Electricity Pricing and if so, the details thereof;

(f) whether renewable sources of electricity would also be a part of Uniform pricing; and

(g) if so, the details thereof?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY (SHRI R.K. SINGH)

(a) : As  per  the  provisions  of  the  Electricity  Act,  2003,  the  State  Electricity Regulatory Commission determines the electricity tariff  for  retail sale  of  electricity to end consumers. Section 61 of the Electricity Act, 2003 and the Tariff Policy provide the guiding principles for determination of tariff.

(b)  &  (c)  :  Section  61(g)  of  the  Electricity  Act,  2003  provides  that  the  Appropriate Commission shall  be  guided  by  the  objective  that  the  tariff  progressively  reflects  the efficient  and  prudent  cost  of  supply  of  electricity.  The  State  Governments  can  give subsidy to the extent they consider appropriate as per the provisions of section 65 of the Act which inter-alia requires State Governments to compensate Discoms for the same.

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

(d) to (g) :   The tariff determination is done by the Appropriate Commission as per the provisions  of  the  Electricity  Act,  2003  and  the  Tariff  Policy.  Section  62(3)  of  the Electricity Act, 2003  provides  that the Appropriate  Commission  shall  not, while determining  the  tariff  under  this  Act,  show  undue  preference  to  any  consumer  of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the  purpose  for  which  the  supply  is  required.  Accordingly,  the  retail  tariffs  are determined by the State Commissions.

At  present  there  is  no  proposal  to  implement  uniform  electricity  pricing through out the country. However, Government is promoting competition through Power Exchanges. The uniform tariff is discovered on the Power Exchanges for a specific time block of the day. Accordingly, to this extent, for the power procured by the distribution utilities from Power Exchanges the price of electricity remains uniform, except in case of market splitting.

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