This paper reinforces the concept that argues energy services should be evaluated from a 'capability perspective' rather than a mere utility point of view. It does so by evaluating the role of electricity in improving the quality of people's lives, using the capability approach, looking at the case of rural electrification in India. This study was carried out in two villages in Chittoor district in the state of Andhra Pradesh, using a qualitative approach. The findings suggest that electricity is a critical input to expand people's choices and opportunities in the pursuit of valued lives. However, the findings also indicate that the benefits of electricity are not equally distributed among all the families in the villages studied. The study recommends that rural electrification policies reconsider what defines an electrified village. Furthermore, this paper also suggests that the policy should promote not only access to electricity but also enhance social and political settings that may help people to transform electricity access into valued capabilities.