Electricity Rates

Electrical Energy Rate Consumption

India is the third-utmost producer and consumer of electricity in the world. On 31st December 2020, the national electric grid installed a capacity of 375.32 GW in India. 36.17% of the total install capacity has come from renewable sources of energy.  The per capita consumption of Electricity Rates is very low in our country despite having a low tariff. The total electricity generation in India in the Fiscal year 2019 was 1598 TWh and consumption was 1208 kWh per capita.


On 24th July Kilburn1879, the first demonstration of electric light in Kolkata was conducted by P.W. Fleury &Co. Kilburn & Co. got the electric license as agents of Indian Electric Co. on 7th January 1897. It is registered in London. Kilburn & Co. was later retitled as the Calcutta Electric Supply Corporation. In 1970, the control of the company was transferred from London to Kolkata.

Electricity Rates

Energy policy in India

India attained 63% of overall energy self-efficiency in 2017. According to the Energy Policy in India, it depends on its expanding energy deficit and increases focus on developing alternative sources of energy, specifically solar, wind, hydro, and thermal energy.

The primary consumption of energy grew by 2.3% in 2019. The majority of the electricity sector is dominated by fossil fuel especially coal (55.88%) which produced about three-quarters of the country’s electricity. Other forms where we get energy are crude oil (29.55%), natural gas (6.17%), nuclear energy (1.09%), hydroelectricity (3.91%). It also has some renewable power sources like solar, hydro, and wind which constitute 3.40% of total production.

Energy rate consumption

The price of electricity in India is 0.082 US dollars per kWh for personal and 0.115 UD dollars for commercial use. It includes all components of the electricity bill such as distribution, cost of power, and taxes.

The government of India launched ‘Power for All’ which provides the necessary infrastructure to ensure all-time electric supply to all commercial household and industrial establishments. This program was launched in December 2018. Collaboration between the center and state governments funds this program.

Towards Sustainable Electric Rate Of Energy

The government is making many efforts to increase the investment in renewable sources of energy in 2018. Electric vehicles are just a step toward sustainable living. With the ever-increasing price of petrol and diesel, electrically driven vehicles are just good alternatives as more electricity is produced from solar energy without affecting the environment. The next innovation that replaces the traditional LPG cylinder is with an electric heater.

The net import of LPG is 6.09 million tons and its household consumption is 13 million tons with Rs. 41,000 crore approx. in its subsidy. The affordable electricity retail price with 90% heating efficiency will replace LPG with 75% efficiency as it will also reduce its import substantially. The national electricity plan states that the country does not need non-renewable energy to produce energy for the power plant sector by 2027 with a supply of 50, 0250 MW coal-based power under construction. It is also expected that non-fossil fuel energy consumption will likely be around 47% of the total gross electric consumption by the year 2030.