Electricity Access in India and Benchmarking Distribution Utilities PDF

NITI Aayog, Ministry of Power, Rockefeller Foundation, and Smart Power India today launched the essential report titled ‘Electricity Access in India and Benchmarking Distribution Utilities’, which provides a thorough analysis of electricity access in India. This report is a must-read for anyone interested in understanding the current state of electricity distribution in our country.

Overview of the Report

This important document is based on a primary survey that covered 10 states, representing about 65% of India’s total rural population. The survey included more than 25,000 participants, including households, commercial businesses, and institutions, and it assesses the performance of 25 distribution utilities.

The report aims to gather insights from both the demand side (electricity customers) and the supply side (electricity distribution utilities). Its main goals are to:

• Evaluate the status of electricity access in India among these states and distribution utilities by examining all aspects that contribute to meaningful access.
• Benchmark utilities’ ability to provide electricity access and identify the factors that promote sustainable access.
• Formulate recommendations for improving sustainable electricity access.

Key Findings from the Report

The report reveals several key findings:

• A remarkable 92% of customers reported that electricity infrastructure is available within 50 metres of their homes; however, not all have actual connections, mainly due to the distance from the nearest pole.
• Overall, 87% of surveyed customers have access to grid-based electricity, while the remaining 13% rely on non-grid sources or do not use electricity at all.
• The number of hours of electricity supply has significantly improved across customer categories, now reaching nearly 17 hours per day.
• Approximately 85% of customers have a metered electricity connection.
• Electricity access has been recorded for 83% of household customers.
• A satisfaction index indicated that 66% of those surveyed are happy with the utility services; this satisfaction rate is 74% in urban areas and 60% in rural regions.

During the launch, NITI Aayog Vice Chairman Rajiv Kumar highlighted the positive impact of government-led initiatives like the Pradhan Mantri Sahaj Bijli Har Ghar Yojana and Deen Dayal Upadhyaya Gram Jyoti Yojana, which are well-received in both rural and urban areas. He emphasized that the Rockefeller Foundation should work closely with the Ministry of Power to address the issues identified in the report and mentioned three critical focus areas: insights from Direct Benefit Transfer schemes in Punjab, tariff simplification, and best practices from successful Indian distribution companies.

Rajiv Kumar added that the report’s policy and regulation recommendations, along with process improvements and utility capacity-building suggestions, will be effectively used to enhance the power distribution sector.

He further expressed, ‘Some recommendations, like prioritizing new connections for non-household customers, transferring subsidies directly into customer accounts, enhancing customer service through technology, and ensuring 100% metering, are already government initiatives. However, we encourage the concerned ministry to speed up their implementation for maximum benefits.’

Ministry of Power Additional Secretary Sanjay Malhotra stated, ‘The Government of India is dedicated to ensuring affordable and reliable electricity for everyone. However, challenges like controlled tariffs and insufficient infrastructure still impede efforts to provide 24×7 electricity access to all.’

Smart Power India CEO Jaideep Mukherji emphasized, ‘India’s advancements in providing electricity connections showcase the nation’s commitment to overcoming the challenges of delivering reliable, high-quality, 24×7 power supply to all grid-connected customers.’

The report sheds light on the best practices adopted by high-performing electricity distribution utilities in India and offers essential recommendations to improve sustainable electricity access. The survey data demonstrate that the electricity distribution infrastructure has seen improvements over time, and reforms made by the government have been positively received by stakeholders.

For more in-depth insights, you can download the PDF of the report.