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Spot electricity tariffs in India still high as demand rises

According to reports, insufficient rains and rising demand from agriculture sector see spot electricity tariffs continued to rule high for the third consecutive month in July.

Most of the country is still facing electricity deficit, industry trackers say. While there has been sufficient rain in North East and few parts of Central India, other parts of the country are yet to get their share.

It is the southern States which fall prey to higher tariff due to congestion rent. This rent is levied when power is sold from surplus region to one in deficit.

According to data compiled by Indian Energy Exchange (IEX), the ‘average electricity tariff’ for rest of India (excluding southern States) was Rs 2.92 a unit in the first fortnight of May (1-15).

It has gone up to Rs 3.59 for every unit in the last fortnight of June (15-30) and has marginally decreased to Rs 3.27 a unit in first fortnight of July (1-15).

Prices for southern States have shot up to more than Rs 10 a unit during the period.

Mr Jayant Deo, Managing Director and Chief Executive officer of IEX, said that spot electricity prices have slightly come down in only in the past few days.

“The prices shot up on summer days and comes down when it rains,” said Mr Deo.

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