Powering up after the power crisis shock

The robust economic recovery after two waves of COVID­19 and the unexpected heatwave have brought back power cuts. The Government is undertaking emergency measures such as canceling passenger trains so as to be able to get the Indian Railways to transport more coal to power plants and issuing directives to use more imported coal to tide over the supply shortfall.

Nature of consumer demand

• According to Electricity Act- Under the Electricity Act, it is the responsibility of the Distribution Licensee/Company (Discom) to provide reliable quality and round­the­clock electricity to all consumers to meet full demand.
• Contracts with generating companies- To do the above, they enter into contracts with a number of generating companies in order to ensure adequate supply. These Discoms work under the oversight of the State Electricity Regulatory Commissions.
• Nature of electricity demand- With higher incomes and the consequent increase in the use of air­conditioners and other electrical appliances, the nature of electricity demand is undergoing a qualitative transformation with rising daily and seasonal peaks, and spikes on very hot or cold days. This will only increase in the years ahead.