Lok Sabha Question No. 2943 (UNSTARRED), answered on 2024-08-08
Subject: Reduction in Electricity Rate
Ministry: POWER
Asked by: Smt. Geniben Nagaji Thakor

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.2943

## ANSWERED ON 08.08.2024

## REDUCTION IN ELECTRICITY RATE

†2943 SMT. GENIBEN NAGAJI THAKOR:

Will the Minister of POWER be pleased to state:

- (a) whether any steps are being taken by the Government to slash electricity rates;
- (b) if so, the details thereof;
- (c) whether the power generation is declining; and
- (d) if  so,  the  steps  taken/being  taken  by  the  Government  to  increase  the power generation in the country?

A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) & (b) : Electricity tariffs in India are determined  by the Appropriate Electricity  Regulatory  Commissions  under  the  Electricity  Act,  2003.    These Commissions are guided by the National Tariff Policy formulated by the Central Government.    State  Electricity  Regulatory  Commissions  determine  the  retail tariff considering power procurement, transmission, wheeling and supply costs. State Governments may provide subsidy to any class of consumers in the tariff determined by the State Commission.  The retail tariff varies from state to state for different consumer  categories depending upon, inter-alia, the power procurement cost, distribution losses and subsidies provided, if any.

Central Government has taken various initiatives aimed at reducing the cost of electricity.  Guidelines have been issued for competitive procurement of electricity by Distribution companies.  Discoms have been enabled to purchase

……..2.

electricity from power exchanges at competitive prices.  Under the scheme for flexibility in utilisation of  domestic coal, plants supplying electricity to Distribution companies have been allowed to use cheaper coal for generation. Lower-cost inter-state generating stations are being prioritised for dispatch of electricity.    Discoms  have  been  incentivised  to  reduce  their  technical  and commercial losses under Revamped Distribution Sector Scheme (RDSS).

- (c) : There  has  been  consistent  growth  in  generation  of  electricity  in  the country except  for a marginal decline in 2020-21  due  to  lower  energy requirement  in  the  country  due  to  COVID-19  pandemic.  The  details  of  total quantity  of  power generated in the country during the last five years and the current year (upto June, 2024), are given at Annexure.
- (d) :   Government  of  India  has  taken  following  steps  to  increase  the  power generation in the country since 2014:
- (i) Increase in installed capacity from 2,48,554 MW in March 2014 to 4,46,190 MW in June 2024.

Further, as against minimum 80,000 MW thermal capacity targeted to be added by 2031-32, 28,400 MW  Thermal Capacity is under construction.  In  addition,  18,087.5  MW  Hydro  Capacity  and  7,300  MW Nuclear Capacity are also expected to be operationalized by 2031-32.

- (ii) Addition of 1,95,181 circuit kilometer (ckm) of transmission lines, 7,30,794 MVA of Transformation capacity and 82,790 MW of Inter-Regional capacity with capability of transferring 1,18,740 MW from one corner of the country to another.

Further, addition of 21,766 ckm transmission line and 1,77,755 MVA transformation capacity is targeted to be completed by 2026-27.

- (iii) Waiver  of  ISTS  charges  on  transmission  of  electricity  generated  from Solar, Wind, Pumped Storage Plants and Battery Energy Storage Systems.
- (iv) Renewable Purchase Obligations (RPOs) and Energy Storage obligations Trajectory till 2029-30.
- (v) Construction of Green Energy Corridors and putting in place 13 Renewable Energy Management Centres.
- (vi) Setting  up  of  Ultra  Mega  Renewable  Energy  Parks  to  provide  land  and transmission  to  RE  developers  for  installation  of  RE  projects  at  large scale.

.........3.

- (vii) Reduction of AT&C losses from 22.62% in 2013-14 to 15.40% in 2022-23. All  current  payment  of  GENCOs  are  up-to-date  and  the  legacy  dues  of GENCOs have come down from Rs. 1,39,947 crore to Rs. 35,119 Crore.
- (viii)  Under  Deen  Dayal  Upadhyaya  Gram  Jyoti  Yojana  (DDUGJY),  Integrated Power  Development  (IPDS)  and  Pradhan  Mantri  Sahaj  Bijli  Har  Ghar Yojana- (SAUBHAGYA) schemes, 18,374 villages have been electrified and 2.86 crore household were provided electricity connections.
- (ix) Introduction  of  SHAKTI  policy  for  transparent  allocation  of  coal  to Thermal Power plants. This enabled efficient domestic coal allocation to Thermal  Power  Plants  and  also  ensured  revival  of  various  stressed Thermal Power Projects.
- (x) Construction of the Inter-State transmission system ahead of the generation capacity.

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ANNEXURE ANNEXURE REFERRED IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 2943 ANSWERED IN THE LOK SABHA ON 08.08.2024 ************* The total quantity of power generated in the country during the last five years and the current year (upto June, 2024)

(All figures are in Million Units)

|                       | 2019-20   | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25 (Upto June)   |
|-----------------------|-----------|-----------|-----------|-----------|-----------|-----------------------|
| Total Power Generated | 13,89,121 | 13,81,855 | 14,91,859 | 16,24,466 | 17,39,091 | 4,85,337              |

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