While electricity consumers and distributors get a three-month relaxation in tariffs and payments to cope with the virus crisis, generating companies are left in the lurch, as the lockdown crimps demand and threatens revenues.
After four months of decline, power demand rose in January and February, only to fall off a cliff in March. Energy consumption has declined 21-22% after the covid-19 lockdown was implemented.
Commercial and industrial demand (C&I) and passenger railways, which account for close to 40% of all power consumption, have ground to a halt, hurting discoms since these segments cross-subsidize lower residential tariffs.
