(a) whether there is a need to reduce the power tariffs in the country;
(b) if so, whether the power tariffs in the country are higher than the average power
tariffs internationally;
(c) if so, the reaction of the Government in this regard;
(d) whether the Government has taken steps for power reforms to bring competition
in this sector; and
(e) if so, the details thereof along with the names of the States in which power
competition has since been brought?
THE MINISTER OF POWER( SHRI P.M. SAYEED )
(a) to (c) : Under the provision of the Electricity Act, 2003, the tariff for supply of
electricity to various categories of consumers is to be determined by the State Electricity
Regulatory Commissions (SERCs) and in doing so these Commissions are required to be
guided by the National Electricity Policy and Tariff Policy and by the provisions
contained in Section 61 which, inter alia, include the factors which would encourage
competition, efficiency, economical use of the resources, safeguarding of consumer`s
interest and at the same time ensure recovery of the cost of electricity in a reasonable
manner.
Retail prices of electricity in India and other countries is enclosed at Annexure.
One of the objectives of the National Electricity Policy notified by the
Central Government is `supply of Reliable and Quality Power of specified standards in
an efficient manner and at reasonable rates`.
(d) & (e) : The Electricity Act, 2003 creates a liberal framework for development of
electricity industry, promoting competition therein, protecting interest of consumers and
supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent
policies regarding subsidies, constitution of Regulatory Commissions and establishment
of Appellate Tribunal.. The Act reduces entry barriers in different segments of power
supply industry and promotes competition and in turn efficiency improvements.
The Act provides for non-discriminatory open access in transmission from
the very outset. Open access in distribution is to be introduced by the SERCs in phases.
Generation has been delicensed by the Act.
Section 63 of the Electricity Act, 2003 provides that the Appropriate
Commission shall adopt the tariff if such tariff has been determined through transparent
process of bidding in accordance with the guidelines issued by the Central Government.
Central Government has issued the guidelines for competitive bidding for determination
of tariff for procurement of power by distribution licensees.
The Act also provides for multiple distribution licenses in same area
through their own distribution system.
Trading has been recognized as a licensed activity.
The National Electricity Policy notified under the provisions of the Act
lays down policy approach for promoting competition aimed at consumer benefits.
ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (c) OF
UNSTARRED QUESTION NO. 5257 TO BE ANSWERED IN THE LOK SABHA
ON 29.04.2005.
Retail prices for Industry and domestic consumers in US Dollars/kWh
Sl. Country Industry Domestic No.
1. Austria 0.07 0.13
2. Belgium 0.04 0.13
3. Canada 0.03 0.05
4. Chinese Taipei 0.06 0.08
5. Czech Republic 0.04 0.05 6. Denmark 0.05 0.19
7 Finland 0.04 0.07
8. France N.A. 0.10
9. Germany 0.05 0.12 10. Hungary 0.05 0.06 11. India 0.07 0.03 12. Ireland 0.05 0.10 13. Italy 0.09 0.13 14. Japan 0.16 0.23 15. Korea 0.06 0.07 16. Luxembourg N.A. 0.10 17. Mexico 0.05 0.07 18. Netherlands 0.06 0.13 19. New Zealand 0.02 0.06 20. Norway N.A 0.06 21. Poland 0.04 0.07 22. Portugal 0.06 0.11 23. Slovak Republic 0.04 0.05 24. South Africa 0.02 0.03 25. Spain 0.05 0.12 26. Sweden 0.03 0.08 27. Switzerland 0.08 0.11 28. Turkey 0.09 0.09 29. United Kingdom 0.05 0.10 30. United States 0.04 0.08
Prices for fourth quarter of 2000
NA = Not available. Source : International Energy Agency (IEA), Key World Energy Statistics, 2001 Edition