Electricity subsidies increased 32% since FY 2016: Report, Jan 16, 2021

Posted On : March 04, 2021

Direct tariff electricity subsidies from the state governments have increased 32 per cent since FY 2016, amounting to Rs 1,10,391 crore ($14.96 billion) in FY 2019, an independent report by the Council on Energy, Environment and Water (CEEW) and the International Institute for Sustainable Development (IISD) said on Thursday.

The report estimates that "cross-subsidies" -- high tariffs for some consumers to cover below-cost tariffs for other consumers -- were worth at least another Rs 75,027 crore ($10.2 billion) in FY 2019, bringing the national total to at least Rs 185,418 crore ($25.2 billion).

According to the CEEW-IISD study, 25 out of 31 states and union territories (UTs) have failed to meet the requirements of the Ujjwal DISCOM Assurance Yojana (UDAY) scheme to reduce aggregate technical and commercial losses (AT&C) to 15 per cent.