Dr Tripta Thakur
COFUND Senior Research Fellow at Josephine Butler College (April - June 2016)
Dr Thakur is a Professor in the Department of Electrical Engineering, National Institute of Technology, MANIT-Bhopal.
Development of a Competition Model for Retail Supply of Electricity in India: Lessons from UK. India needs to increase its installed electricity capacity by at three times of present capacity of 250 GW to meet demand in 2031/32. This ambitious goal needs a commercially viable power sector. Presently financially viability of utilities has continued to worsen considerably on a year-to-year basis, reaching a point that has been termed “India’s subprime crisis.” Thus, urgent work is needed to make the distribution sector financially viable and competitive.
In India, despite impressing performance in generation (the third highest generating capacity worldwide) and transmission sector, distribution continues to be weakest link in the electricity value chain. Thus, third generation reform in the form of competition in retail supply is urgently needed to meet the challenges in the distribution sector in India. The proposed project for the development of competitive model for retail supply is the one of the most important steps in this direction. Internationally, the competitive retail electricity supply model has been implemented in UK, and the outcome is regarded positive. Since Indian Government is currently thinking to introduce retail competition in supply, it would be interesting to examine if the choice of an appropriate power market model for India can be an improvised and suitably adapted from an appropriately modified replica of the UK model.