Question : Free of Cost Power

(a) the names of the States where the electricity continues to be provided free of cost to the sections of the community;

(b) the details of total expenditure on this head, State-wise; and

(c) whether Government have given any advice to these States for refraining from such a course, if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER,
COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI PIYUSH GOYAL )

(a) to (c) : The Central Government has no specific information regarding free of cost power provided by the States to the sections of the community as the tariff of distribution companies is determined by the State Electricity Regulatory Commissions (SERCs)/Joint Electricity Regulatory Commissions (JERCs) based on the principles enunciated under the Electricity Act, 2003 and policies framed thereunder. The State Governments can give subsidy to the extent they consider appropriate as per the provisions of Section 65 of the Electricity Act, 2003 as well as Clause 8.3 of the Tariff Policy. There is no provision for direct regulation of the electricity tariff by the Central Government.

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