Power Consumption Slump Narrows to 2.64% in July; Likely to Hit Normal Level in August

The slump in power consumption has narrowed to just 2.64 per cent in July at 113.48 billion units (BU) indicating spurt in economic activity and raised hopes that it would touch normal level this month.

Power consumption in July last year was at 116.48 BU, as per power ministry data.

The latest data of the power ministry shows that power consumption has improved after government started giving relaxations for economic activities and onset of summers.

The government had imposed lockdown to contain COVID-19 on March 25, 2020 which affected commercial and industrial electricity demand as well as consumption.

Power consumption in June had declined 10.93 per cent to 105.08 BU, as compared to 117.98 BU a year ago.

Similarly, power consumption in the country was down by 14.86 per cent in May and 23.21 per cent April this year.

The months of April, May and June this year witnessed low power consumption on account of lower commercial and industrial activities due to COVID-19-related restrictions.

"The slump in power consumption has narrowed down considerably to 2.6 per cent. It is expected to be at normal level (what it was last year in same month) during August. There could be growth in power demand in coming days with expansion in economic activities," an industry expert said.

Peak power demand met, the highest energy supply during the day across the country, was at 170.54 GW in July, down 2.61 per cent compared to 175.12 GW a year ago.

In June, peak power demand met had dipped to 164.94 GW, as compared to 182.45 GW in June 2019.

In May, the peak power demand met stood at 166.42 GW, 8.82 per cent less than 182.55 GW in the year-ago period.

While, in April it stood at 132.77 GW, about 25 per cent lower than 176.81 GW recorded in the corresponding month a year earlier.

Country's power consumption was low in April this year owing to lower commercial and industrial demand and the relatively cool weather as temperature remained below 40 degree celsius even in the second half of the month.

However, with gradual easing of lockdown restrictions, power consumption revived following spurt in economic activity, which led to rise in industrial and commercial demand.

Besides the rising temperatures due to intense heat wave also increased power demand.