Subject
Debt in South Asia's power sectors.
Significance
A lack of cost recovery from power generation in India and other South Asian countries is creating unmanageable debts for transmission and distribution companies. While further investment could facilitate the improvements needed to reduce system losses, electrification programmes are increasing the deficit.
Impacts
Government attempts to raise power sector capital will likely fall disproportionately on industry via higher industrial electricity tariffs.
Electrification at the expense of system improvements will detract from reliability.
India, Pakistan and Bangladesh will all import more liquefied natural gas (LNG).