Carnegie Mellon University
©
Dr. Rahul Tongia
12
Draft – Subject to Change
The Bottom Line
–“Cost of supply” is Rs. 3.50/kWh, realization only Rs.
2.40/kWh
–Much of
the electricity is sold below cost (and some well above
cost)
–Much of it
is unaccounted for
–High
T&D losses (~30%)
–Technical – 10-15% (?)
–“Commercial” =Theft –
15-18%
–Utilities
are bleeding money
–Returns
calculated as –30 to –40% (on Net Assets)
–Losses
(excluding $1.5 B subsidy) are approximately $4 billion