The advent of the novel coronavirus (COVID-19) pandemic forced India to resort to a lockdown. In order to contain the spread of COVID-19, a nationwide lockdown has been announced in phases since 24 March. This has adversely affected the power sector, affecting demand and collection, and thus the financial health of distribution companies (DISCOMs).
Before the lockdown, India recorded a peak demand of 170 GW on 3 March, which declined sharply to 115 GW (a reduction of 55 GW) on 27 March, following the start of the lockdown. This can be attributed to the closure of most of the industries and commercial establishments — including the railways — during the lockdown. These categories of consumers represent 50 % of the total demand at national level. As such, this has a significant impact on peak demand.
As the lock-down restrictions are being eased by the resumption of business activities, DISCOMs need to assess the impact of lock-ups and strategies to deal with such eventualities in the longer term.
State Saga
Like most states, the impact of the national lockdown has also been borne by Karnataka. The state witnessed a drop in peak demand from 1.29 GW (before the lockdown) to 1.06 GW (during the lockdown). The state's energy demand has also been hit by the lockdown.
Karnataka's annual electricity consumption (by 258 lakh consumers) in fiscal year 2019-20 was approximately 59,396 MU. Of these, industrial and commercial consumers accounted for 18 percent (10455MU) and 12 percent (7178MU) respectively.
