BHUBANESWAR : State-owned power trading utility GRIDCO on Monday proposed a sharp increase in bulk supply price (BSP) for 2026-27, triggering strong opposition during the first day of public hearings conducted by the Odisha Electricity Regulatory Commission (OERC).
Presenting its aggregate revenue requirement (ARR) and BSP petition before OERC chaired by Pradeep Kumar Jena, GRIDCO sought approval for an average BSP of 388.23 paise per unit for FY27, an increase of 58 paise over the current approved rate of 330.66 paise per unit.
GRIDCO managing director Satyapriya Rath told the Commission that the utility expects to sell 39,203 million units (MU) of electricity in FY27, including 39,103 MU to the four Tata Power-operated distribution companies and 100 MU as emergency supply to captive generating plants (CGPs). After factoring in three per cent transmission loss, the state PSU projected total state consumption at 40,416 MU, to be procured at an average cost of 358.85 paise per unit.
The utility, however, projected total power availability of 46,334 MU from various sources at an average procurement cost of 347.57 paise per unit, leaving a surplus of 5,918 MU proposed to be sold in the open market through power trading. It estimated its net revenue requirement at Rs 15,181.08 crore for FY27 after adjusting miscellaneous income of Rs 74.50 crore.
This includes Rs 14,503.08 crore towards power purchase cost, Rs 67.09 crore as pass-through of past power purchase expenses, Rs 639.87 crore towards interest and finance costs and Rs 45.54 crore towards establishment and other expenses. At the current BSP, GRIDCO projected a revenue gap of about Rs 2,260 crore, which it seeks to bridge through the proposed hike.
The Commission raised multiple concerns during the hearing. Chairperson Jena expressed dissatisfaction over the projected reduction of 500 MU generation from the Indravati project and flagged frequent outages at the OPGC thermal plant, leading to loss of cheaper power. He directed the Energy department to take corrective steps.
Sixteen objectors participated in the hearing, voicing strong opposition to the proposed hike. Consumer groups argued that GRIDCO had not fully utilised cheaper power available from captive and independent power producers in Odisha, contending that better procurement and trading strategies could avoid any increase in bulk tariff. Industry representatives, including major steel and manufacturing firms, urged the Commission to ensure affordable power to protect industrial competitiveness.