The average domestic electricity bill will rise by 33% across India next month as distribution firms seek to raise tariffs to share increasing fuel cost and revenue gaps with consumers. Some consumers in Mumbai are looking at rates as high as Rs. 11/unit and many domestic consumers in Andhra Pradesh can expect rates as high as Rs. 7/unit. Tamil Nadu's distribution utility has demanded a 64% rise in energy charges for 2012-13. Most distribution companies are also proposing increases in fixed and demand charges according to tariff petitions filed with electricity regulators. The reason for this dramatic increase in power rates all over the country is the increase in the cost of the main fuels used in power generating stations, namely, coal and oil. In fact, electricity prices across the country have nearly doubled in the last 10 years and might double again in the next 10 years because of increased fuel costs.
While the cost of power from thermal stations is increasing rapidly, the cost of power from renewable energy sources (such as solar and wind) are dropping even more rapidly. Solar power can be now produced at about Rs. 7 per unit and with technology making great strides, it will soon become much cheaper. If this trend continues, power distribution companies will be switching over to power generated from renewable sources very soon.
If anyone wants to reduce his dependence on CESC and generate his own power using rooftop photo-voltaic panels, there is more good news. The capital cost of solar panels has dropped by more than 75% in the last four years and will drop further. A 100 watt solar panel for rooftop use is now available for less than Rs. 20,000.
Shankar Sharma, Mysore Grahakara Parishat