Demand for electricity in October spikes 12% on diesel price hike

Sector executives pointed out that increase in electricity demand shot up power prices in the spot power market

Demand for electricity has gone up in the past two months owing to increase in diesel prices, with October recording a spike of 12.5 per cent compared to the same period last year. 

The increase was aided by captive power producers and diesel-run industrial units shifting their demand on grid-connected power. August recorded an increase in electricity demand of 7.6 per cent from 6.6 per cent rise in July - as per IIP data.

Industry sources said that most of the users junked the fuel as prices continued to soar in the past few months. In September, diesel price went as high