Consumers in several states have begun to endure power cuts as summer temperatures soar. Electricity demand has breached projections before most states could plan for the summer, resulting in an immediate spike in short-term electricity rates.
The regulator had to step in on April 1 to lower the cap on prices on power exchanges to Rs 12 a unit, from Rs 20, as frantic purchases by states to meet unanticipated demand sent spot rates shooting up.
With hotter-than-usual weather and high industrial demand, the country could be in for a difficult summer.
