Abstract
Andhra Pradesh power sector with an annual turnover of about Rs. 40,000 Cr is one of the sectors severely affected due to imposition of lockdown. Power, a seasonally varying industry, records its maximum sales during the summer. This summer being affected by COVID-19, power sector income is likely to be affected. Consumer category wise monthly sales data (domestic, commercial, industry, institutional and agriculture) available with distribution companies is a very valuable source of information to forecast the future sales as well as COVID impact on it. This paper obtained the sales data from Discoms and analysed the COVID impact on sales and income.It is found that there is 22% fall in daily demand since lock down. 11% or 6300 MU fall is expected in overall energy sales for 2020-21 due to covid - 24% in Q1, 10% Q2, 7% in Q3. A16% or Rs 4700 Cr fall in overall income 2020-21 is expected due to COVID - 38% in Q1, 15% Q2, 9% in Q3.COVID has affected the power sector at a time when there was a general trend of decline in energy consumption in subsidising sectors viz., industry and commercial. The recovery post COVID is going to become a challenge. A financial stimulus to the power sector to wipe out its debts, neutralise receivables from Government, and reforms in the sector bringing in mandatory competition at the retail level will be required to support the essential sector in the long run.
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