Kapardhi Bharadwaj, Karthik Ganesan, Neeraj Kuldeep
October 2017 | Power Markets
Suggested Citation: Bharadwaj, Kapardhi, Karthik Ganesan, and Neeraj Kuldeep. 2017. Retail Tariffs for Electricity Consumers in Bangalore: A Forward Looking Assessment. New Delhi: Council on Energy, Environment and Water.
This report estimates the rise in tariffs for electricity consumers in Bangalore over a period of ten years, and explores the effects of increasing renewable energy penetration on the tariffs.
Estimating the future cost of electricity requires an understanding of the different components that make up an electricity bill, the regulatory procedures and influences that impact the tariff for each of these components, and the market and political forces that affect these tariffs. There are four component that influence an electricity bill - power procurement costs, transmission charges, distribution charges and cross-subsidy charges, which this report examines in detail. Power procurement costs continue to constitute the largest share of the cost of supply.
Source: Pixabay
The estimates in this report incorporate two scenarios of renewable energy growth – high renewable energy penetration and low renewable energy penetration – and their impact on the cost of procurement.
Source | Assumptions |
---|---|
Coal | Energy charges assumed to increase by 9.1% year-on-year |
Wind | Energy charges assumed to increase by 0.3% year-on-year |
Hydro | Energy charges assumed to increase by 1.3% year-on-year |
Solar | Energy charges assumed to decrease by 5% year-on-year |
Source: CEEW
Source: Based on audited accounts of BESCOM FY14