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Paid Your Electricity Bill This Month? You Paid Too Much

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By Amit Bhandari:

One of the first steps of the Aam Aadmi Party (AAP) government in Delhi has been to slash electricity tariffs for domestic users who consume less than 400 units a month.

Some characterise the move as a handout.

Photo Credit
Photo Credit

However, an IndiaSpend analysis of the data suggests that a cut in electricity prices is warranted for almost all the urban consumers, especially those in metropolitan cities, such as Delhi, Mumbai, and Bangalore. The urban consumer pays a far higher price for electricity than its cost. Electricity pricing seems designed to transfer money from cities to villages, and from paying consumers to free-loaders.

Consider Mumbai:

Reliance Energy is one of the utilities selling electricity to consumers. The minimum tariff that a Reliance Energy user pays is Rs. 5.13/unit, which goes up  to Rs. 11.27/unit, if your consumption is high. Commercial and industrial users pay rates ranging from Rs. 10.72/unit to Rs. 15.3/unit (Refer To Table 1)

Table 1_JPG
Source: Lok Sabha; BYPL: BSES Yamuna Power Ltd; BRPL: BSES Rajdhani Power Ltd; NDPL: Tata Power Delhi Distribution Ltd.

Electricity prices are higher in urban areas across the country, and especially so for the industrial and commercial users. The prices, that consumers in Mumbai are paying, appear to have no relationship with the cost of the raw material – in this case, electricity. We looked at the cost of the electricity supplied by the different sources and utilities.

The cost of the electricity sold by the three top public sector utilities in India – NTPC, NHPC and NPCIL – ranges from Rs. 2.71/unit to Rs. 3.38/unit. These three companies, owned by the central government, are the leading producers of thermal, hydro, and nuclear power in India. Along with other sister companies, they generate almost 40% of India’s electricity.

There are some other utilities, owned by the state governments and private sector, which have a higher cost of generation, but not much higher (Refer Table 2).

Source: Lok Sabha
Source: Lok Sabha

Electricity from coal, lignite, nuclear, or hydro — which accounts for the bulk of electricity generated in India — costs Rs. 0.86-5.29/unit. So, how does this electricity, then sell for rates as high as Rs. 10 or more in urban areas?

Agreed that the price of electricity isn’t just the cost of generating it. There are transmission and distribution costs too. However, these costs are incurred when the transmission and distribution networks are being put up. There is no cost in transmitting the electricity through wires except for operations and maintenance.

Meanwhile, even though urban, commercial, and industrial users are being charged well above the cost for electricity, most of the state electricity boards are deep in the red.

So, what’s going on?

There are two big reasons – technical and commercial (T&C) – loss of power in transit and free/subsidised power to farmers. In 2012-13, about a fourth of all the electricity in India was lost in transit. These losses are not as high elsewhere in the world: the reason for high T&C loss in India is that a lot of power is stolen. If a fourth of electricity is stolen, then the legitimate consumers pay 33% extra to compensate for the loss.

The other big reason is free or highly subsidised power to farmers. In some states like Karnataka and Tamil Nadu, electricity for agriculture is free. In many other states, including Bihar, Jharkhand, and Uttar Pradesh the tariff for agriculture is less than Rs. 2/unit.

Subsidised power to the farmers and power theft explain why, despite commercial rates for power, most of the Indian state utilities are still in the red. During the financial year 2012-13, the utilities in India lost Rs. 68,085 crore. This loss is a direct transfer of money from the bill paying citizens to rural India and power-stealers.

However, these factors still don’t explain the exceptionally high price of electricity in Mumbai — especially since there are no agricultural users to subsidise in the city and the power theft there is about the lowest in the country.

This article was originally published by IndiaSpend.

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An ambassador and trained facilitator under Eco Femme (a social enterprise working towards menstrual health in south India), Sanjina is also an active member of the MHM Collective- India and Menstrual Health Alliance- India. She has conducted Menstrual Health sessions in multiple government schools adopted by Rotary District 3240 as part of their WinS project in rural Bengal. She has also delivered training of trainers on SRHR, gender, sexuality and Menstruation for Tomorrow’s Foundation, Vikramshila Education Resource Society, Nirdhan trust and Micro Finance, Tollygunj Women In Need, Paint It Red in Kolkata.

Now as an MH Fellow with YKA, she’s expanding her impressive scope of work further by launching a campaign to facilitate the process of ensuring better menstrual health and SRH services for women residing in correctional homes in West Bengal. The campaign will entail an independent study to take stalk of the present conditions of MHM in correctional homes across the state and use its findings to build public support and political will to take the necessary action.

Saurabh has been associated with YKA as a user and has consistently been writing on the issue MHM and its intersectionality with other issues in the society. Now as an MHM Fellow with YKA, he’s launched the Right to Period campaign, which aims to ensure proper execution of MHM guidelines in Delhi’s schools.

The long-term aim of the campaign is to develop an open culture where menstruation is not treated as a taboo. The campaign also seeks to hold the schools accountable for their responsibilities as an important component in the implementation of MHM policies by making adequate sanitation infrastructure and knowledge of MHM available in school premises.

Read more about his campaign.

Harshita is a psychologist and works to support people with mental health issues, particularly adolescents who are survivors of violence. Associated with the Azadi Foundation in UP, Harshita became an MHM Fellow with YKA, with the aim of promoting better menstrual health.

Her campaign #MeriMarzi aims to promote menstrual health and wellness, hygiene and facilities for female sex workers in UP. She says, “Knowledge about natural body processes is a very basic human right. And for individuals whose occupation is providing sexual services, it becomes even more important.”

Meri Marzi aims to ensure sensitised, non-discriminatory health workers for the needs of female sex workers in the Suraksha Clinics under the UPSACS (Uttar Pradesh State AIDS Control Society) program by creating more dialogues and garnering public support for the cause of sex workers’ menstrual rights. The campaign will also ensure interventions with sex workers to clear misconceptions around overall hygiene management to ensure that results flow both ways.

Read more about her campaign.

MH Fellow Sabna comes with significant experience working with a range of development issues. A co-founder of Project Sakhi Saheli, which aims to combat period poverty and break menstrual taboos, Sabna has, in the past, worked on the issue of menstruation in urban slums of Delhi with women and adolescent girls. She and her team also released MenstraBook, with menstrastories and organised Menstra Tlk in the Delhi School of Social Work to create more conversations on menstruation.

With YKA MHM Fellow Vineet, Sabna launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society. As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Read more about her campaign. 

A student from Delhi School of Social work, Vineet is a part of Project Sakhi Saheli, an initiative by the students of Delhi school of Social Work to create awareness on Menstrual Health and combat Period Poverty. Along with MHM Action Fellow Sabna, Vineet launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society.

As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Find out more about the campaign here.

A native of Bhagalpur district – Bihar, Shalini Jha believes in equal rights for all genders and wants to work for a gender-equal and just society. In the past she’s had a year-long association as a community leader with Haiyya: Organise for Action’s Health Over Stigma campaign. She’s pursuing a Master’s in Literature with Ambedkar University, Delhi and as an MHM Fellow with YKA, recently launched ‘Project अल्हड़ (Alharh)’.

She says, “Bihar is ranked the lowest in India’s SDG Index 2019 for India. Hygienic and comfortable menstruation is a basic human right and sustainable development cannot be ensured if menstruators are deprived of their basic rights.” Project अल्हड़ (Alharh) aims to create a robust sensitised community in Bhagalpur to collectively spread awareness, break the taboo, debunk myths and initiate fearless conversations around menstruation. The campaign aims to reach at least 6000 adolescent girls from government and private schools in Baghalpur district in 2020.

Read more about the campaign here.

A psychologist and co-founder of a mental health NGO called Customize Cognition, Ritika forayed into the space of menstrual health and hygiene, sexual and reproductive healthcare and rights and gender equality as an MHM Fellow with YKA. She says, “The experience of working on MHM/SRHR and gender equality has been an enriching and eye-opening experience. I have learned what’s beneath the surface of the issue, be it awareness, lack of resources or disregard for trans men, who also menstruate.”

The Transmen-ses campaign aims to tackle the issue of silence and disregard for trans men’s menstruation needs, by mobilising gender sensitive health professionals and gender neutral restrooms in Lucknow.

Read more about the campaign here.

A Computer Science engineer by education, Nitisha started her career in the corporate sector, before realising she wanted to work in the development and social justice space. Since then, she has worked with Teach For India and Care India and is from the founding batch of Indian School of Development Management (ISDM), a one of its kind organisation creating leaders for the development sector through its experiential learning post graduate program.

As a Youth Ki Awaaz Menstrual Health Fellow, Nitisha has started Let’s Talk Period, a campaign to mobilise young people to switch to sustainable period products. She says, “80 lakh women in Delhi use non-biodegradable sanitary products, generate 3000 tonnes of menstrual waste, that takes 500-800 years to decompose; which in turn contributes to the health issues of all menstruators, increased burden of waste management on the city and harmful living environment for all citizens.

Let’s Talk Period aims to change this by

Find out more about her campaign here.

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A former Assistant Secretary with the Ministry of Women and Child Development in West Bengal for three months, Lakshmi Bhavya has been championing the cause of menstrual hygiene in her district. By associating herself with the Lalana Campaign, a holistic menstrual hygiene awareness campaign which is conducted by the Anahat NGO, Lakshmi has been slowly breaking taboos when it comes to periods and menstrual hygiene.

A Gender Rights Activist working with the tribal and marginalized communities in india, Srilekha is a PhD scholar working on understanding body and sexuality among tribal girls, to fill the gaps in research around indigenous women and their stories. Srilekha has worked extensively at the grassroots level with community based organisations, through several advocacy initiatives around Gender, Mental Health, Menstrual Hygiene and Sexual and Reproductive Health Rights (SRHR) for the indigenous in Jharkhand, over the last 6 years.

Srilekha has also contributed to sustainable livelihood projects and legal aid programs for survivors of sex trafficking. She has been conducting research based programs on maternal health, mental health, gender based violence, sex and sexuality. Her interest lies in conducting workshops for young people on life skills, feminism, gender and sexuality, trauma, resilience and interpersonal relationships.

A Guwahati-based college student pursuing her Masters in Tata Institute of Social Sciences, Bidisha started the #BleedwithDignity campaign on the technology platform Change.org, demanding that the Government of Assam install
biodegradable sanitary pad vending machines in all government schools across the state. Her petition on Change.org has already gathered support from over 90000 people and continues to grow.

Bidisha was selected in Change.org’s flagship program ‘She Creates Change’ having run successful online advocacy
campaigns, which were widely recognised. Through the #BleedwithDignity campaign; she organised and celebrated World Menstrual Hygiene Day, 2019 in Guwahati, Assam by hosting a wall mural by collaborating with local organisations. The initiative was widely covered by national and local media, and the mural was later inaugurated by the event’s chief guest Commissioner of Guwahati Municipal Corporation (GMC) Debeswar Malakar, IAS.

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