8.1. Power Availability in India

There has been an increase in electricity generation from 967 BU in 2013-14 to 1048 BU in 2014-15 and 1107 BU in 2015-16 resulting in lowest ever energy deficit of 2.1% in 2015-16, which has further lowered to 0.7% (April-Oct, 2016) from 2.1% (2015-16). The National Peak Power Deficit is down to half at 1.6% in the same period as compared to 2015-16.

Since 2014, sweeping changes have characterized the power sector, including: record addition to generation capacity and the comprehensive initiative – Ujwal DISCOM Assurance Yojana (UDAY) – to improve the health and performance of the distribution companies.

In this context, the following issues of long term interest for the states and their power regulators are important: reducing the complexity of tariff schedules that may prevent consumers from fully responding to price signals, the impact of quality adjusted tariffs on the competitiveness of Indian industry and the impediments to creating one market for power.