Mexico Prices Fall Most in Four Decades as Electricity, Food Lead Declines

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MexicoÂ’s consumer prices last month fell the most in 42 years as electricity, food and education costs declined, cementing expectations that policy makers will keep interest rates at a record low this year.

Prices dropped 0.74 percent, the central bank said today on its website, the most since the index was created in February 1969. The decline was more than the 0.66 percent forecast by 17 economists surveyed by Bloomberg. Annual inflation slowed to 3.25 percent from 3.36 percent in April.

Policy makers kept their benchmark interest rate unchanged in May for a record 19th straight month as prices remain within their target range and the economy expands less than its potential. Tame inflation and a possible slowdown in some sectors of the economy, such as manufacturing, raise the odds of a longer rate pause, said Gabriel Lozano, senior economist for Mexico at Banco Santander Mexico.

The central bank “may start raising after March 2012, but we’re keeping our forecast for the first increase for January 2012,” Lozano said in a phone interview. Policy makers “should be calm because inflation expectations are well anchored and core inflation will be below 3 percent.”

Electricity prices, which are regulated by the government fell 19 percent in May, while tomato prices fell 36 percent. Education costs fell 0.27 percent.

Rent and utility costs fell for a second month, declining 1.97 percent in May after a 1.68 percent drop in April.

“Going forward we expect to see price pressures in food and other products,” Lozano said. Banco Santander forecasts annual inflation of 3.7 percent at year-end.

‘Within the Forecast’

While policy makers in Latin AmericaÂ’s four other major inflation targeting economies -- Brazil, Colombia, Chile, and Peru -- have been raising rates in 2011, MexicoÂ’s central bank has been able to keep borrowing costs this year as both growth and inflation slowed.

Banco de Mexico, led by bank Governor Agustin Carstens, on May 27 extended its longest-ever rate pause, keeping the overnight rate at 4.5 percent.

“General inflation is still within the forecast of the most recent inflation report,” policy makers said in the statement explaining their decision.

Central bank policy makers meet next on July 8.

Inflation, Rate Horizon

TodayÂ’s report also showed that the core inflation rate was 0.18 percent in May, higher than the median forecast for a 0.14 percent increase in a Bloomberg survey of 16 economists. The core inflation rate was 0.08 percent in April.

“Some merchandise and services prices climbed and this may be the beginning of the trend we expect to see for the remainder of the year,” Arturo Vieyra, coordinator of economic studies at Citigroup Inc.’s Banamex in Mexico City, said in a telephone interview.

Banamex forecasts an annual inflation rate of 3.7 percent for 2011. “Today’s report doesn’t make us change our call.”

According to the central bankÂ’s monthly survey published June 1, economists cut their 2011 inflation forecast for a third month, while also keeping their growth forecast unchanged.

Consumer prices will rise 3.67 percent by the end of 2011, the survey showed, down from a 3.87 percent forecast last month. The economy will expand 4.37 percent in 2011, according to the survey.

In the central bankÂ’s last quarterly inflation report published May 11, policy makers kept their 2011 inflation forecast unchanged at 2 percent to 4 percent while raising their growth estimate to 4 percent to 5 percent.

The bank had previously forecast 3.8 percent to 4.8 percent economic expansion.

Carstens last month said the economy may grow 5 percent in 2011 provided domestic consumption and private investment recover.

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Iran Says Deals to Rehabilitate, Develop Iraq Power Grid Finalized

Iran-Iraq Power Grid Deals reinforce electricity and natural gas ties, upgrading transmission in Karbala and Najaf, repairing transformers, easing sanctions bottlenecks, and weighing GCC interconnection to diversify supply and reduce distribution losses across Iraq.

 

Key Points

Agreements to rehabilitate Iraq's grid, cut losses, and secure power via Iranian gas, electricity, and upgrades.

✅ Reduce distribution losses in Karbala and Najaf

✅ Repair and replace damaged distribution transformers

✅ Coordinate payments to TAVANIR amid US sanctions

 

Iran and Iraq have finalized two deals to rehabilitate and develop the power grid of Iraq, while Iran is upgrading thermal plants to combined cycle at home to save energy, IRNA cited the Iranian Energy Minister Reza Ardakanian.

Ardakanian met his Iraqi counterpart Majid Mahdi Hantoush in Tehran on Tuesday evening for talks on further energy cooperation on the sidelines of Prime Minister Mustafa al-Kadhimi’s trip to the Islamic Republic on his first foreign visit.

“It was decided that the contracts related to reducing losses on the electricity distribution network in the provinces of Karbala and Najaf, as well as the contract for repairing Iraq’s distribution transformers would be finalized and signed,” the Iranian minister said.

Iraq relies on Iran for natural gas that generates as much as 45 percent of its electricity, with Iran supplying 40% of Iraq’s power according to sector reports. Iran transmits another 1,200 MW directly, and has regional power hub plans as well, making itself an indispensable energy source for its Arab neighbor, but the United States is trying to pry Baghdad away from Tehran’s orbit.

The US has been enlisting its companies and allies such as Saudi Arabia to replace Iran as Iraq’s source of energy.

Iran’s money from exports of gas and electricity has accumulated in bank accounts in Iraq, because US sanctions are preventing Tehran from repatriating it.

In January, an official said the sanctions were giving Iran a run for five billion dollars, “sedimenting” at the Central Bank of Iraq, because Tehran could not access it.

Ardakanian said the issue was brought up in the discussions on Tuesday and it was agreed that “the payment of part of TAVANIR (Iran Power Generation and Transmission Company)’s claims will start from the end of July”.

The US administration is pushing for a deal between Washington, Baghdad and six Persian Gulf states to connect Iraq’s nationwide power grid to that of the Persian Gulf Cooperation Council, while Uzbekistan looks to export power to Afghanistan as regional linkages expand.

The US State Department said in a statement last Thursday that the six countries that make up the (Persian) Gulf Cooperation Council Interconnection Authority (GCCIA) — Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE — had affirmed their shared support for the project to supply electricity to Iraq.

Iraq needs more than 23,000 MW of electricity to meet its domestic demand, and is exploring nuclear power plans to tackle shortages, but years of war following the 2003 US invasion have left its power infrastructure in tatters and a deficit of some 7,000 MW.

In the past, officials in Baghdad have said there is no easy substitute to imports from Iran because it will take years to adequately build up Iraq’s energy infrastructure, and meeting summer electricity needs remains a persistent challenge.

They have said American demand acknowledges neither Iraq’s energy needs nor the complex relations between Baghdad and Tehran.

In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.

On Tuesday, the Iraqi prime minister said during a joint news conference with Iranian President Hassan Rouhani that the purpose of his trip to Tehran was to strengthen historical ties between the two countries, especially in light of the challenges they faced as a result of the coronavirus outbreak and the fall of oil prices.

“In the face of such challenges, we need coordination between the two countries in a way that serves the interests of Iran and Iraq.”

Both Iran and Iraq, Kadhimi said, suffer from economic problems, adding the two countries need comprehensive and inclusive cooperation to overcome them.

Kadhimi said Iran-Iraq relations are not merely due to the geographical location of the two countries and their 1,450-km border, adding the ties are based on religion and culture and rooted in history.

“I am reiterating to my brothers in the Islamic Republic of Iran that the Iraqi nation is eager to have excellent relations with the Islamic Republic of Iran based on the principle of non-interference in the internal affairs of the two countries.”

Kadhimi said Iran and Iraq fought against terrorism and Takfiri groups together, and the Islamic Republic of Iran was one of the first countries to stand by Iraq.

“We will not forget this. That is why Iraq has stood with Iran to help it overcome economic challenges and turned to a big market for trade with Iran,” he said.

“We seek stability in Iraq and our philosophy and view of Iran is that we consider Iran a stable, strong, prosperous and progressive country, and this fact is in the interest of Iraq and the territorial integrity of the region,” he added.

According to Kadhimi, the two sides discussed implementing agreements between them, including connecting their railway through Khorramshahr in Iran and Basra in Iraq, adding he was very confident the agreements would be implemented soon.

Iraq’s delegation included the ministers of foreign affairs, finance, health, and planning, as well as Kadhimi’s national security adviser, some of whom also met their Iranian counterparts.

Last year, Iran’s exports to Iraq amounted to nearly $9 billion, IRNA reported. It said the two nations will discuss increasing that amount to $20 billion.

“The two governments’ will is to expand bilateral trade to $20 billion,” Rouhani said after an hour-long meeting with the Iraqi prime minister.

 

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The crisis in numbers: How COVID-19 has reshaped Saskatchewan

Saskatchewan COVID-19 economic impact: real-time data shows drops in electricity demand, oil well licensing, traffic and tickets, plus spikes in internet usage, government site visits, remote work, and alcohol wholesale volumes.

 

Key Points

COVID-19 reduced energy use, drilling and traffic, while pushing activity online; jobs, rents and sales show strain.

✅ Electricity demand down 6.7%; residential usage up

✅ Oil well license applications fell 15-fold in April

✅ Internet traffic up 16%-46%; wireless LTE up 34%

 

We’re only just beginning to grasp how COVID-19 has upended Saskatchewan’s economy, its government and all of our lives.

The numbers that usually make headlines — job losses, economic contraction, bankruptcies — are still well behind the pace of the virus and its toll.

But other numbers change more quickly. Saskatchewan people are using less power, and the power industry is adopting on-site staffing plans to ensure reliability as conditions evolve. We’re racking up fewer speeding tickets. And as new restrictions come, we’re clicking onto Saskatchewan.ca as much as 10,000 times per minute.

Here’s some data that provides a first glimpse into how much our province has changed in just six weeks.

Electricity use tends to rise and fall in tandem with the health of the economy, and the most recent data from SaskPower suggests businesses are powering down, while regional utilities such as Manitoba Hydro seek unpaid days off to trim costs.

Peak load requirements between March 15 and April 26 were 220 MW lower than during the same period in 2019, and elsewhere BC Hydro is posting COVID-19 updates at Site C as it manages project impacts. That’s a decrease of 6.7 per cent, with total load on April 29 at 2,551 MW. A megawatt is enough electricity to power about 1,000 homes.

Separate from pandemic impacts, an external investigation at Manitoba Hydro has drawn attention to workplace conduct issues.

But it’s not homes that are turning off the lights. SaskPower spokesman Joel Cherry said commercial and industrial usage is down, while residential demand is up, with household electricity bills rising as more people stay home.

The timing of power demand has also shifted, a pattern seen as residential electricity use rises during work-from-home routines. Peak load would usually come around 8 or 9 p.m. in April. Now it’s coming earlier, typically between 5 and 6 p.m.

Oil well applications fall 15-fold
Oil prices have cratered since late February, and producers in Saskatchewan have reacted by pulling back on drilling plans, while neighbouring Alberta provides transition support for coal workers amid broader energy shifts.

Applications for well licences fell from 242 in January to 203 in February (including nine potash and one helium operations), before dropping to 84 in March. April, the month benchmark oil prices went negative for one day, producers submitted just 15 applications.

That’s 15 times fewer than the 231 applications the Ministry of Energy and Resources received in April 2019.

Well licences are needed for drilling, operating, injecting, producing or exploring an oil and gas or potash well in the province.

There has been no clear trend in well abandonment, however. There were 176 applications for abandonment in March and 155 in April, roughly in line with figures from the year before.

SGI spokesman Tyler McMurchy believes the lower numbers might stem from a combination of lower traffic volumes during part of the month, possibly combined with a shift in police priorities. The March 2020 numbers are also well below January and February figures.

Indeed, the Ministry of Highways and infrastructure reported a 16 per cent decrease in average daily traffic last month compared to March 2019, through its traffic counts at 11 different spots on highways across the province.

In Regina, traffic counts at 16 locations dropped from a high of 2.1 million in the first week of March to a low of 1.3 million during the week of March 22. That’s a 44 per cent decrease.

Counts have gradually recovered to 1.6 million in the weeks since. The data was fairly consistent at all 16 spots, which are largely major intersections, though the city cautioned they may not be representative of Regina as a whole.

Tickets for cellphone use while driving also fell, dropping from 562 in February to 314 in March. McMurchy noted that distracted driving numbers in general have been falling since November as stiffer penalties were announced. Impaired driving tickets were up, by contrast, but still within a typical range.

Internet traffic shoots up 16 per cent, far more for rural high speed
You may be spending a lot more time on Netflix and Facebook in the age of social distancing, and SaskTel has noticed.

From late February to late April, SaskTel has seen “very significant increases in provincial data traffic.” DSL and fibre optic networks have handled a 16 per cent increase in traffic, while demand on the wireless LTE network is up 34 per cent.

Usage on the Fusion network up 46 per cent. That network serves rural areas that don’t have access to other high-speed options.

The specific reference dates for comparison were February 24 and April 27.

“We attribute these changes in data usage to the pandemic and not expected seasonal or yearly shifts in usage patterns,” said spokesman Greg Jacobs.

Saskatchewan.ca was attracting just 70 page views per minute on average in February. But page views jumped over 10,000 per minute at 2:38 p.m. on March 18, as Moe was still announcing the new measures.

That’s a 14,000 per cent increase.

For all of March, visitor sessions on the site clocked in at 3,905,061, almost four times the 944,904 recorded for February.

Bureaucracy has increasingly migrated to cyberspace, with 62 per cent of civil servants now working from home. Government Skype calls, both audio and video, have tripled from 12,000 sessions per day to 35,000.Telephone conference calls increased by a factor of 14 from the first week of February to the second full week of April, with 25 times more weekly call participants. 

The Ministry of Central Services reported a 17 per cent jump in emails received by government over the past two months, excluding the Ministry of Health.

But as civil servants spend more time on their computers, the government’s fleet is spending a lot less time on the road. The ministry has purchased 40 per cent fewer litres of fuel for its vehicles over the past four weeks, compared to the same time last year.

Alcohol wholesale volumes up 22 per cent, then fall back to normal
Retailers bought more alcohol from the Saskatchewan Liquor and Gaming Authority (SLGA) last month, just as the government began tightening pandemic restrictions.

Wholesale sales volumes were up 22 per cent over March 15 to 28, compared to the same period in 2019. SLGA spokesman David Morris said the additional demand “was likely the result of retailers stocking-up as restrictions related to COVID-19 took effect.”

But the jump didn’t last. Wholesale volumes were back to normal for the first two weeks of April. SLGA did notice a very slight uptick last week, however, with volumes out of its distribution centre up three per cent. The numbers do not include Brewer’s Distributors Ltd.

It’s unclear how much more alcohol consumers actually purchased, since province-wide retail numbers were not available.

There was no discernible trend in March for anti-anxiety medication, however. The number of prescriptions filled for benzodiazepines like Valium, Xanax and Ativan see-sawed over March, according to data provided by the College of Physicians and Surgeons, but its associate registrar does not believe the trends are statistically relevant.

One-fifth of tenants miss April rent
About 20 per cent of residential rent went totally unpaid in the first six days of April, according to the Saskatchewan Landlord Association (SLA).

The precise number is 19.7 per cent, but there’s some uncertainty due to the survey method, which is based on responses from 300 residential landlords with 14,000 units. An additional 12 per cent of tenants paid a portion of their rent, but not the full amount. The figures do not include social housing.

Cameron Choquette, the association’s executive officer, partly blames the province’s decision to suspend most landlord tenant board hearings for evictions, saying it “allows more people to take advantage of landlords by not paying their rent and not facing any consequences.”

The government has defended the suspension by saying it’s needed to ensure everyone has a safe place to self-isolate if needed during the pandemic.

March’s jobs numbers were bad, with almost 21,000 fewer Saskatchewan people employed compared to February.

April’s labour force survey is expected on Friday. But new April numbers released Wednesday show that two-thirds of the province’s businesses managed to avoid laying off staff almost entirely.

According to Statistics Canada, 66.2 per cent of businesses reported laying off between zero and one per cent of their employees due to COVID-19. That was better than any other province. Just 7.6 per cent laid off all of their employees, again the best number outside the territories. The survey period was April 3 to 24.

Some businesses are even hiring. Walmart, for instance, has hired 300 people in Saskatchewan since mid-March.

Trade and Export Development Minister Jeremy Harrison chalked the data up to a relatively more optimistic business outlook in Saskatchewan, combined with “very targeted” restrictions and a support program for small and medium businesses.

That support program, which provides $5,000 grants to qualifying businesses affected by government restrictions, has only been around for three weeks. But it’s already been bombarded with 6,317 applications.

The total value of those applications would be $24,178,000, according to Harrison. Of them, 3,586 have been approved with a value of $11,755,000.

Businesses are coming to Harrison’s ministry with thousands of questions. Since it opened in March, the Business Response Team has received 4,125 calls and 1,758 emails.

The kinds of questions have changed over the course of the pandemic. Many are now asking when they can open their doors, according to Harrison, as they wonder about “grey areas” in the Re-Open Saskatchewan plan.

 

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Texas produces and consumes the most electricity in the US

Texas ERCOT Power Grid leads U.S. wind generation yet faces isolated interconnection, FERC exemption, and high industrial energy use, with distinct electricity and natural gas prices managed by a single balancing authority.

 

Key Points

The state-run interconnection that balances Texas electricity, isolated from FERC oversight and other U.S. grids.

✅ Largest U.S. wind power producer, high industrial demand

✅ Operates one balancing authority, independent interconnection

✅ Pays lower electricity, higher natural gas vs national average

 

For nearly two decades, the Lone Star State has generated more wind-sourced electricity than any other state in the U.S., according to the Energy Information Administration, or EIA.

In 2022, EIA reported Texas produced more electricity than any other state and generated twice as much as second-place Florida.

However, Texas also leads the country in another category. According to EIA, Texas is the largest energy-consuming state in the nation across all sectors with more than half of the state’s energy being used by the industrial sector.

As of May 2023, Texas residents paid 43% more for natural gas and around 10% less for electricity compared to the national average, according to EIA, and in competitive areas shopping for electricity is getting cheaper as well. Commercial and industrial sectors on average for the same month paid 25% less for electricity compared to the national average.


U.S. electric system compared to Texas
The U.S. electric system is essentially split into three regions called interconnections and are managed by a total of 74 entities called balancing authorities that ensure that power supply and demand are balanced throughout the region to prevent the possibility of blackouts, according to EIA.

The three regions (Interconnections):

Eastern Interconnection: Covers all U.S. states east of the Rocky Mountains, a portion of northern Texas, and consists of 36 balancing authorities.
Western Interconnection: Covers all U.S. states west of the Rockies and consists of 37 balancing authorities.
ERCOT: Covers the majority of Texas and consists of one balancing authority (itself).

During the 2021 winter storm, Texas electric cooperatives were credited with helping maintain service in many communities.

“ERCOT is unique in that the balancing authority, interconnection, and the regional transmission organization are all the same entity and physical system,” according to EIA, a structure often discussed in analyses of Texas power grid challenges today.

With this being the case, Texas is the only state in the U.S. that balances itself, the only state that is not subject to the jurisdiction of the Federal Energy Regulatory Commission, or FERC, and the only state that is not synchronously interconnected to the grid in the rest of the United States in the event of tight grid conditions, highlighting ongoing discussions about improving Texas grid reliability before peak seasons, according to EIA.

Every other state in the U.S. is connected to a web of multiple balancing authorities that contribute to ensuring power supply and demand are met.

California, for example, was the fourth largest electricity producer and the third largest electricity consumer in the nation in 2022, according to EIA, and California imports the most electricity from other states while Pennsylvania exports the most.

Although California produces significantly less electricity than Texas, it has the ability to connect with more than 10 neighboring balancing authorities within the Western Interconnection to interchange electricity, a dynamic that can see clean states importing dirty electricity under certain market conditions. ERCOT being independent only has electricity interchange with two balancing authorities, one of which is in Mexico.

Regardless of Texas’ unique power structure compared to the rest of the nation, the vast majority of the U.S. risked electricity supplies during this summer’s high heat, as outlined in severe heat blackout risks reports, according to EIA.

 

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Power customers in British Columbia, Quebec have faced fees for refusing the installation of smart meters

NB Power Smart Meter Opt-Out Fees reflect cost causation principles set before the Energy and Utilities Board, covering meter reading charges, transmitter-disable options, rollout targets, and education plans across New Brunswick's smart metering program.

 

Key Points

Fees NB Power may apply to customers opting out of smart meters, reflecting cost causation and meter-reading costs.

✅ Based on cost causation and meter reading expenses

✅ BC and Quebec charge monthly opt-out surcharges

✅ Policy finalized during rollout after EUB review

 

NB Power customers who do not want a smart meter installed on their home could be facing a stiff fee for that decision, but so far the utility is not saying how much it might be.  

"It will be based on the principles of cost causation, but we have not gotten into the detail of what that fee would be at this point," said NB Power Senior Vice President of Operations Lori Clark at Energy and Utilities Board hearings on Friday.

In other jurisdictions that have already adopted smart meters, customers not wanting to participate have faced hundreds of dollars in extra charges, while Texas utilities' pullback from smart-home networks shows approaches can differ.

In British Columbia, power customers are charged a meter reading fee of $32.40 per month if they refuse a smart meter, or $20 per month if they accept a smart meter but insist its radio transmitter be turned off. That's a cost of between $240 and $388.80 per year for customers to opt out.

In Quebec, smart meters were installed beginning in 2012. Customers who refused the devices were initially charged $98 to opt out plus a meter reading fee of $17 per month. That was eventually cut by Quebec's energy board in 2014 to a $15 refusal fee and a $5 per month meter reading surcharge.

NB Power said it may be a year or more before it settles on its own fee.

"The opt out policy will be developed and implemented as part of the roll out.  It will be one of the last things we do," said Clark.

 

Customers need to be on board

NB Power is in front of the New Brunswick Energy and Utilities Board seeking permission to spend $122.7 million to install 350,000 smart meters province wide, as neighboring markets grapple with major rate increases that heighten affordability concerns.  

The meters are capable of transmitting consumption data of customers back to NB Power in real time, which the utility said will allow for a number of innovations in pricing and service, and help address old meter inaccuracies that affected some households.

The meters require near universal adoption by customers to maximize their financial benefit — like eliminating more than $20 million a year NB Power currently spends to read meters manually. The utility has said the switch will not succeed if too many customers opt out.

"We certainly wouldn't be looking at making an investment of this size without having the customer with us," said Clark.

On Thursday, Kent County resident Daniel LeBlanc, who along with Roger Richard, is opposing the introduction of smart meters for health reasons, predicted a cool reception for the technology in many parts of the province, given concerns that include health effects and billing disputes in Nova Scotia reported elsewhere.

"If one were to ask most of the people in the rural areas, I'm not sure you would get a lot of takers for this infrastructure," said LeBlanc, who is concerned with the long-term effect microwave frequencies used by the meters to transmit data may have on human health.

That issue is before the EUB next week.

 

Haven't tested the waters

NB Power acknowledged it has not measured public opinion on adopting smart meters but is confident it can convince customers it is a good idea for them and the utility, even as seasonal rate proposals in New Brunswick have prompted consumer backlash.

"People don't understand what the smart meter is," said Clark. "We need to educate our customers first to allow them to make an informed decision so that will be part of the roll out plan."

Clark noted that smart meters, helped by stiff opting out penalties, were eventually accepted by 98 per cent of customers in British Columbia and by 97.4 per cent of customers in Quebec.

"We will check and adjust along the way if there are issues with customer uptake," said Clark.

 

"This is very similar to what has been done in other jurisdictions and they haven't had those challenges."

 

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India is now the world’s third-largest electricity producer

India Electricity Production 2017 surged to 1,160 BU, ranking third globally; rising TWh output with 334 GW capacity, strong renewables and thermal mix, 7% CAGR in generation, and growing demand, investments, and FDI inflows.

 

Key Points

India's 2017 power output reached 1,160 BU, third globally, supported by 334 GW capacity, rising renewables, and 7% CAGR.

✅ 1,160 BU generated; third after China and the US

✅ Installed capacity 334 GW; 65% thermal, rising renewables

✅ Generation CAGR ~7%; demand, FDI, investments rising

 

India now generates around 1,160.1 billion units of electricity in financial year 2017, up 4.72% from the previous year, and amid surging global electricity demand that is straining power systems. The country is behind only China which produced 6,015 terrawatt hours (TWh. 1 TW = 1,000,000 megawatts) and the US (4,327 TWh), and is ahead of Russia, Japan, Germany, and Canada.


 

India’s electricity production grew 34% over seven years to 2017, and the country now produces more energy than Japan and Russia, which had 27% and 8.77% more electricity generation capacity installed, respectively, than India seven years ago.

India produced 1,160.10 billion units (BU) of electricity–one BU is enough to power 10 million households (one household using average of about 3 units per day) for a month–in financial year (FY) 2017. Electricity production stood at 1,003.525 BU between April 2017-January 2018, according to a February 2018 report by India Brand Equity Foundation (IBEF), a trust established by the commerce ministry.

#google#

With a production of 1,423 BU in FY 2016, India was the third largest producer and the third largest consumer of electricity in the world, behind China (6,015 BU) and the United States (4,327 BU).

With an annual growth rate of 22.6% capacity addition over a decade to FY 2017, renewables beat other power sources–thermal, hydro and nuclear. Renewables, however, made up only 18.79% of India’s energy, up 68.65% since 2007, and globally, low-emissions sources are expected to cover most demand growth in the coming years. About 65% of installed capacity continues to be thermal.

As of January 2018, India has installed power capacity of 334.4 gigawatt (GW), making it the fifth largest installed capacity in the world after European Union, China, United States and Japan, and with much of the fleet coal-based, imported coal volumes have risen at times amid domestic supply constraints.

The government is targeting capacity addition of around 100 GW–the current power production of United Kingdom–by 2022, as per the IBEF report.


 

Electricity generation grew at 7% annually

India achieved a 34.48% growth in electricity production by producing 1,160.10 BU in 2017 compared to 771.60 BU in 2010–meaning that in these seven years, electricity production in India grew at a compound annual growth rate (CAGR) of 7.03%, while thermal power plants' PLF has risen recently amid higher demand and lower hydro.

 

Generation capacity grew at 10% annually

Of 334.5 GW installed capacity as of January 2018–up 60% from 132.30 GW in 2007–thermal installed capacity was 219.81 GW. Hydro and renewable energy installed capacity totaled 44.96 GW and 62.85 GW, respectively, said the report.

The CAGR in installed capacity over a decade to 2017 was 10.57% for thermal power, 22.06% for renewable energy–the fastest among all sources of power–2.51% for hydro power and 5.68% for nuclear power.

 

Growing demand, higher investments will drive future growth

Growing population and increasing penetration of electricity connections, along with increasing per-capita usage would provide further impetus to the power sector, said the report.

Power consumption is estimated to increase from 1,160.1 BU in 2016 to 1,894.7 BU in 2022, as per the report, though electricity demand fell sharply in one recent period.

Increasing investment remained one of the driving factors of power sector growth in the country.

Power sector has a 100% foreign direct investment (FDI) permit, which boosted FDI inflows in the sector.

Total FDI inflows in the power sector reached $12.97 billion (Rs 83,713 crore) during April 2000 to December 2017, accounting for 3.52% of FDI inflows in India, the report said.

 

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UK EV Drivers Demand Fairer Vehicle Taxes

UK EV Per-Mile Taxes are reshaping road pricing and vehicle taxation for electric cars, raising fairness concerns, climate policy questions, and funding needs for infrastructure and charging networks across the country.

 

Key Points

They are per-mile road charges on EVs to fund infrastructure, raising fairness, emissions, and vehicle taxation concerns.

✅ Propose tax relief or credits for EV owners

✅ Consider emission-based road user charging

✅ Invest in charging networks and road infrastructure

 

As the UK continues its push towards a greener future with increased adoption of electric vehicles (EVs) and surging EV interest during supply disruptions, a growing number of electric car drivers are voicing their frustration over the current tax system. The debate centers around the per-mile vehicle taxes that are being proposed and implemented, which many argue are unfairly burdensome on EV owners. This issue has sparked a broader campaign advocating for a more equitable approach to vehicle taxation, one that reflects the evolving landscape of transportation and environmental policy.

Rising Costs for Electric Car Owners

Electric vehicles have been hailed as a crucial component in the UK’s strategy to reduce carbon emissions and combat climate change. Government incentives, such as grants for EV purchases and tax breaks, have been instrumental in encouraging the shift from petrol and diesel cars to cleaner alternatives, even as affordability concerns persist among many UK consumers. However, as the number of electric vehicles on the road grows, the financial dynamics of vehicle taxation are coming under scrutiny.

One of the key issues is the introduction and increase of per-mile vehicle taxes. While these taxes are designed to account for road usage and infrastructure costs, they have been met with resistance from EV drivers who argue that they are being disproportionately affected. Unlike traditional combustion engine vehicles, electric cars typically have lower running costs compared to petrol or diesel models and, in many cases, benefit from lower or zero emissions. Yet, the current tax system does not always reflect these advantages.

The Taxation Debate

The crux of the debate lies in how vehicle taxes are structured and implemented. Per-mile taxes are intended to ensure that all road users contribute fairly to the maintenance of transport infrastructure. However, the implementation of such taxes has raised concerns about fairness and affordability, particularly for those who have invested heavily in electric vehicles.

Critics argue that per-mile taxes do not adequately take into account the environmental benefits of driving an electric car, noting that the net impact depends on the electricity generation mix in each market. While EV owners are contributing to a cleaner environment by reducing emissions, they are also facing higher taxes that could undermine the financial benefits of their greener choice. This has led to calls for a reassessment of the tax system to ensure that it aligns with the UK’s climate goals and provides a fair deal for electric vehicle drivers.

Campaigns for Fairer Taxation

In response to these concerns, several advocacy groups and individual EV owners have launched campaigns calling for a more balanced approach to vehicle taxation. These campaigns emphasize the need for a system that supports the transition to electric vehicles and recognizes their role in reducing environmental impact, drawing on ambitious EV targets abroad as useful benchmarks.

Key proposals from these campaigns include:

  1. Tax Relief for EV Owners: Advocates suggest providing targeted tax relief for electric vehicle owners to offset the costs of per-mile taxes. This could include subsidies or tax credits that acknowledge the environmental benefits of EVs and help to make up for higher road usage fees.

  2. Emission-Based Taxation: An alternative approach is to design vehicle taxes based on emissions rather than mileage. This system would ensure that those driving high-emission vehicles contribute more to road maintenance, while EV owners, who are already reducing emissions, are not penalized.

  3. Infrastructure Investments: Campaigners also call for increased investments in infrastructure that supports electric vehicles, such as charging networks and proper grid management practices that balance load. This would help to address concerns about the adequacy of current road maintenance and support the growing number of EVs on the road.

Government Response and Future Directions

The UK government faces the challenge of balancing revenue needs with environmental goals. While there is recognition of the need to update the tax system in light of increasing EV adoption, there is also a focus on ensuring that any changes are equitable and do not disincentivize the shift towards cleaner vehicles, while considering whether the UK grid can handle additional EV demand reliably.

Discussions are ongoing about how to best implement changes that address the concerns of electric vehicle owners while ensuring that the transportation infrastructure remains adequately funded. The outcome of these discussions will be critical in shaping the future of vehicle taxation in the UK and supporting the country’s broader environmental objectives.

Conclusion

As electric vehicle adoption continues to rise in the UK, the debate over vehicle taxation becomes increasingly important. The campaign for fairer per-mile taxes highlights the need for a tax system that supports the transition to cleaner transportation while also being fair to those who have made environmentally conscious choices. Balancing these factors will be key to achieving the UK’s climate goals and ensuring that all road users contribute equitably to the maintenance of transport infrastructure. The ongoing dialogue and policy adjustments will play a crucial role in shaping a sustainable and just future for transportation in the UK.

 

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