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35%

FIGURE 2.5 Electricity consumption in various sectors (utilities). (From Annual reports of the Planning Commission, India, www.planningcommission.nic.in).

measures to allocate revenue requirement in an economically efficient manner by reducing the extent of cross-subsidies. This has primarily been achieved by increasing the low-tension tariff1 to a greater extent as compared to high-tension tariff2. The increase in the agricultural tariff is a bold measure initiated by a number of state commissions. The commissions have issued suitable directions to the utilities along with the tariff orders in response to various issues such as quality of supply, energy auditing, and transformer failure that were faced during the process of tariff setting.

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