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thermal power development - Infraline

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Central electricity authority Annual Report 2009-10<br />

CHAPTER – 9<br />

ECONOMIC AND COMMERCIAL ASPECTS<br />

OF POWER INDUSTRY<br />

The Electricity Act, 2003 was notified<br />

in June, 2003. The Act replaces the three<br />

earlier Acts, namely-the Indian Electricity Act<br />

1910, Electricity (Supply) Act, 1948 and the<br />

Electricity Regulatory Commission Act, 1998.<br />

As per the 2003 Act, CEA has inter-alia been<br />

entrusted with duties and functions relating to<br />

collection/recording of data/information relating<br />

to generation, transmission, distribution, trading<br />

and utilization of electricity and to carry out<br />

studies relating to cost, efficiency, competition<br />

etc. to evaluate the financial performance of the<br />

<strong>power</strong> sector.<br />

9.1 Performance of State Electricity<br />

Boards/ State Power Utilities<br />

9.1.1 Average realization vis-a` vis Average<br />

Cost of Supply<br />

The average cost of supply of electricity<br />

was 246 paise/unit during 2001-02. It<br />

decreased to 238 paise/unit during 2002-03.<br />

Thereafter, it gradually increased to 293 paise/<br />

unit during 2007-08.The average realisation<br />

from sale of <strong>power</strong> has gradually increased<br />

from 181 paise per unit during 2001-02 to<br />

239 paise per unit during 2007-08. The table<br />

below gives the average cost of supply and<br />

average realization covering all sectors in the<br />

country on the basis of the data made available<br />

by various SEBs/Utilities:<br />

Average Cost of Supply and Average Realization of Electricity (from All Sectors)<br />

(in paise/unit)<br />

Year Average Cost of Supply Average Realisation Gap<br />

2001-02 246.00 181.00 65.00<br />

2002-03 238.00 195.00 43.00<br />

2003-04 239.00 203.00 36.00<br />

2004-05 254.00 209.00 45.00<br />

2005-06 260.00 221.00 39.00<br />

2006-07 276.00 227.00 49.00<br />

2007-08 293.00 239.00 54.00<br />

Source: PFC Reports on the performance of the State Power Utilities.<br />

9.1.2 Commercial Losses<br />

Various <strong>power</strong> utilities in the country<br />

have been suffering losses over the years<br />

without subsidy. State-wise details of total<br />

commercial losses of <strong>power</strong> utilities for the<br />

period 2001-02 to 2007-08 are indicated<br />

below:<br />

96<br />

“CEA-Helping the Transformation of Indian Power Sector”

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