Power Distribution Tariffs in India - 2024

About

Power distribution utilities rely on tariffs to generate revenue, cover expenses, and fund network expansion. While this business model appears sound, many distribution companies (discoms) still suffer significant losses. This raises the question: Where does the system falter? Is it due to discoms prioritizing consumer interests or the authorities' attempts to create politically acceptable policies?

Achieving an unbiased understanding of power distribution is complex, but it is clear that the authorities' intentions can impede the financial stability of discoms. This ongoing issue highlights the need for tariff rationalization as a potential solution. As of April 2024, power distribution tariffs vary significantly across different states in India. For instance, Delhi charges around ₹4-5 per kWh for residential consumers using up to 400 units per month, while states like Maharashtra have higher rates, approximately ₹8-9 per kWh for similar consumption levels. This disparity in tariffs reflects the broader challenges in aligning costs and revenues.

One critical factor is the lack of a mandate for state discoms in India to adjust their supply costs annually. Additionally, net metering payouts are based on the average cost of electricity supply or the cost of supply for only 8-9 of the 29 states. So, why aren't discoms adjusting their tariffs accordingly? The cost of generating electricity has risen, especially for thermal power, due to increased fuel costs and technological advancements aimed at reducing emissions.

Table of contents (TOC)

• Base line analysis of DISCOMs in India
• Assessing financial health of DISCOMs
• Assessing operational health of DISCOMs
• Consumer category wise “Retail Supply Tariffs” in India for FY 2024-25 for Northern Region States
• Consumer category wise “Retail Supply Tariffs” in India for FY 2024-25 for Southern Region States
• Consumer category wise “Retail Supply Tariffs” in India for FY 2024-25 for Eastern Region States
• Consumer category wise “Retail Supply Tariffs” in India for FY 2024-25 for Western Region States
• Consumer category wise “Retail Supply Tariffs” in India for FY 2024-25 for North Eastern Region States and Union Territories
• Interactive Data to Information (D2I) tool for DISCOM wise tariff analysis in India – FY 2024-25
• Conclusion, Recommendations & Key Findings

USPs

• Our Satisfied Patrons and Retention rate of over 98.4% on yoy basis for market reports
• Our Market Research DNA & Team of Seasoned Domain Specialists

Key Highlights

• Interactive Data to Information (D2I) tool-based analysis for DISCOM wise tariff analysis in India – FY 2024-25
• Impact analysis of CERC tariff regulations 2019-24 and way forward
• Consumer category wise tariff schedule for FY 2024-25
• Consumer category wise revenue contribution for FY 2024-25
• Net Aggregate Revenue Requirement for DISCOMs for FY 2024-25
• Revenue Gap/Surplus of DISCOMs
• Consumer category wise energy sales analysis
• Base line data Analysis for DISCOMs
• Financial & Operational feasibility/condition of DISCOMs

Report Insights

• Power Purchase Cost (PPC) being the greatest contributor to the costs in ARR
• Monetary implications arising due to poor planning of transmission network planners
• Power tariff structure very complex, needs rationalization
• “Latent Power Demand” should be factored by DISCOMs in their power demand forecast
• Growing share of Renewable Energy
• There is a need to enhance the efficiency of operations at the distribution level

Must Buy For

• Power Generating Companies
• Power Distribution Utilities
• Power Transmission Utilities
• Captive/Group Captive Consumers
• Independent Power Producers
• Commercial & Industrial Consumers
• State Electricity Regulatory Authorities
• FIIs/Banks
• Industrial Park/SEZs/Steel Plants
• Power Project Funding Bodies
• Foreign Collaborating Agencies
• Utility Solar Power Project Developers
• Utility Wind Power Project Developers
• Other RE Project Developers
• Government & Regulatory Bodies
• Research Institutions/Bodies
• Funding Bodies/Banks
• Consulting Agencies
• Government Agencies
• Investment Institutions

Companies Mentioned

• Tata Power Delhi Distribution Limited
• BSES Rajdhani
• BSES Yamuna
• Torent Power
• Andhra Pradesh Southern Power Distribution Company
• Andhra Pradesh Eastern Power Distribution Compnay
• Paschim Gujarat Vij Company Limited
• Uttar Gujarat Vij Company Limited
• Madhya Gujarat Vij Company Limited
• Dakshin Gujarat Vij Company Limited
• Madhya Pradesh Madhya Kshetra Vidyut Viatarn Company Limited
• Jaipur Vidyut Vitaran Nigam Limited
• Dakshinanchal Vdyut Vitaran Nigam Limited
• Kanpur Electricity Supply Company Limited
• All Other State & Private Distribution Utilities & Franchises