This is what gets privatization a bad name. Electricity was never privatized in Delhi. The production and distribution was still under government control. The privatization was just a cover up or to say a front organization. Private entities were just responsible to say hello when you had problems with the service and collect your bills on time.
The point I am trying to make is that when you are in a business, not with the intention of making profits you cannot gauge the proper demand for your services and thus the appropriate prices for the same.
Economists tend to treat electricity production and distribution as a natural monopoly where in only one company can profitable provide services in a given area. However, I tend to disagree. Let the private companies fight it out. If more than one company wants have distribution in a given area, let it happen. Its not our money that are investing.
In the end the company that provides the best value for our money will stand out. And with the fear of other companies jumping into the scene if there is a lack in services or unnatural profits, companies tend to behave themselves.
At the end of the day, you really do not want to trust someone with something as basic as electricity, someone who shows up once every 5 years to beg for your vote. Such problems should be left up to the people to deal with. The government needs to stay out of it.