Given surging demand for electricity and scarcity of coal, the mainstay fuel for India’s traditional sources of power generation, this was bound to happen.
The Central Electricity Regulatory Authority (CERC) has said consumers should prepare for a 15-20 percent increase in power tariffs every year, according to The Economic Times.
Coupled with Tamilnadu’s proposed 20% tariff increase today, it seems a consensus has emerged across all levels of Indian government to factor in market realities, in addition to political exigencies, when it comes to pricing power. These moves will also save several state distribution utilities from going bankrupt. At least, for now.
However, this does not fully address the scarcity and unreliability of utility power in India. In contrast to these uncertainties, Serra Power offers price guarantees to our industrial customers for the 20-year lifetime of captive, solar plants.