High electricity prices hurting India’s exports: OECD

India ranked 108th out of 141 economies in 2019 on the World Economic Forum competitiveness index for the quality of electricity supply

New Delhi : The competitiveness of India’s electricity-intensive exports has suffered from relatively high electricity prices and the lack of reliable provision in some parts of the country, according to the latest India economic survey by Organisation for Economic Co-operation and Development (OECD).

The Survey, released today, said while the provision of electricity has expanded significantly and power cuts are becoming less frequent, India ranked 108th out of 141 economies in 2019 on the World Economic Forum competitiveness index for the quality of electricity supply.

“In addition, commercial and industrial users pay a higher price than households and farmers. Cross-subsidisation, coupled with large technical and transmission losses, has been reflected in relatively high electricity prices for industries,” the Survey stated.

OECD also pointed out that several reforms, such as reducing the number of electricity prices and making retail tariffs more cost-reflective, are being implemented in some states and would likely help make industrial companies based in India more competitive.

Source : energy.economictimes