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Political Economy of Electricity
Have Regulators failed to introduce competition in power sector? Can Regulators realistically chart a trajectory to reduce cross-subsidy? Is the Indian open access model deeply flawed? Will Regulators be held responsible for non-working of ‘Uday’? Pramod Deo, Former Chairman, CERC
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% Contribution of Total Revenue
Illustration Case-1: Maharashtra DISCOM Source: MERC Tariff order for MSEDCL (Note : ABR : Average Billing Rate (derived) and ACoS : Average Cost of Supply) Consumer Type Grouping No of consumers (No.) Revenue Contribution (‘000 Rs Crore) % Contribution of Total Revenue (%) *ABR/ ACoS Ratio (ABR/ ACoS) % HT Industrial / HT Commercial (a) 16,000 23 42% 8.10 / 6.03 134% 1 MW above (est.) incl. HT Ind/Comms (b) includes (a) 79,000 29 53% 8.04 / 6.03 133% All Remaining consumers (c) 23 million 26 47% 4.62 / 6.03 77% Agriculture (d) 3.8 million 6.9 13% 3.11 / 6.03 52% All Remaining excl. (e)=(c)-(d) 19.2 million 19.1 34% 5.61 / 6.03 93% All Consumers (f)=(b)+(c) 23.1 million 55 100% 6.03/ 6.03
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% Contribution of Total Revenue
. Illustration Case-2: Gujarat DISCOM Source: GERC Tariff order for Discoms (Note : ABR : Average Billing Rate (derived) and ACoS : Average Cost of Supply) Consumer Type Grouping No of consumers (No.) Revenue Contribution (‘000 Rs Crore) % Contribution of Total Revenue (%) *ABR/ ACoS Ratio (ABR/ ACoS) % HT Industrial / HT Commercial (a) 12,580 13 43% 7.00 / 5.46 128% 1 MW above (est.) incl. HT Ind/Comms (b) includes (a) NA 20 67% 6.73 / 5.46 123% All Remaining consumers (c) 13.50 million 10 33% 3.53 / 5.46 65% Agriculture (d) 1.19 million 3.9 13% 2.46 / 5.46 45% All Remaining excl. (e)=(c)-(d) 12.30 million 6.1 20% 4.86 / 5.46 89% All Consumers (f)=(b)+(c) 13.52 million 30 5.18/5.46 95% Pramod Deo, Former Chairman, CERC
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