News Detail

NEWS:

Since January this year, over half a dozen states have kicked-off the process of hiking their power tariff. What is ironical, though, is that the steady stream of tariff hike proposals comes in a year when electricity demand is sluggish and capacity utilisation of the thermal power plants decreasing.
Source: The Indian Express

SNP Insights:

Falling demand and rising supply of power should have reduce the price but unfortunately power tariff is increasing by going against the basic fundamental of economics. The reason for this anomaly may be untimely revision of the tariff, deteriorating the financial health of the discom. Poor balance sheet is likely to be the cause for discom going for outages than buying power in short term market impacting the PLF of the power plants which is forcing the tariff to shoot up for recovery of fixed cost.
Source: SNP Infra Research