The deficit in supply of electricity against demand in the country is affecting the economy adversely. While estimates of the cost of electricity shortages vary from 0.5 per cent to 1.5 per cent of the GDP, even more serious is the enormous loss of human welfare on account of an erratic and unreliable supply of power. While official figures indicate a peak shortage of 13.9 per cent and energy shortages amounting to 9.3 per cent, the recent performance of the power sector does not provide any assurance that relief is in sight. One basic flaw lies in the sole emphasis on adding supply capacity without adequate regard to bringing about efficiency improvements and implementing measures for demand management.

In the mid-1980s the Advisory Board on Energy, which reported directly to the prime minister, entrusted TERI with the task of assessing the efficacy and economic viability of demand-side measures including the possibility of introducing two time zones in the country. The logic behind two time zones is simple. A large part of the demand for electricity is clock related. Office timings would determine the routine that even households follow in consuming power which would have a direct relationship with working hours. So would be the case with factories and the timings they follow. On the other hand, several activities for which electricity is used are essentially sun related. A farmer, for instance, would generally begin his day based on the time when the sun rises and end it when it sets. Morning walkers in a city, for instance, would get up and switch on their lights and water heaters based on early sunrise hours in the summer and somewhat later hours in the winter.

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