BHUBANESWAR: Reeling under financial crisis with a loan burden touching about Rs 7,654 crore, the Grid Corporation of Odisha Limited (Gridco) has requested the Odisha Electricity Regulatory Commission (OERC) for upward revision of bulk supply price by 41 per cent (pc) to meet its annual revenue requirement for 2020-21.Filing its annual revenue requirement (ARR) and bulk supply price (BSP) applications before the OERC for the coming financial year, the bulk power trading utility has estimated its revenue requirement at Rs 10,747.50 crore.
Projecting a net energy demand of 29,181.37 million unit (MU) for the four distribution companies (discoms) - Cesu, Nesco, Southco and Wesco, the State-owned company said it will sell 28,247.37 MU after a transmission loss of 3.2 pc (equivalent to 933.80 MU).“Revenue of Rs 7,623.84 crore will be earned by Gridco from sale of proposed energy of 28,187.37 MU to discoms during 2020-21 against the proposed net ARR of Rs 10,747.50 crore at the existing average BSP of 270.47 paise per unit. This will result in revenue deficit of Rs 3,123.66 crore,” the Gridco application said.
In order to make up for the revenue deficit, Gridco has proposed a BSP of 381.29 P/U for 2020-21 for approval by the commission. Noting that the company has sustained a cumulative loss of Rs 5,326.7 crore since 2009-10 due to the gap in the actual power purchase cost and approved cost by the commission, the application said Gridco has no other options but to resort to borrowing to meet the payment obligations in order to keep supplying power to the discoms.
“Gridco is also required to service the outstanding loan liabilities to the tune of Rs 2,093 crore to the lenders which comprise the State Government, banks and financial institutions,” it said.Though Gridco has asked for a BSP hike of 326.77 paise per unit for 2019-20 as against 276.66 paise per unit in 2018-19, OERC had reduced the price to 270.47 paise per unit.
As a result, the company has incurred a revenue gap of Rs 1,189.87 crore in the current financial year till end of September. Gridco has filed a review petition before the OERC against the latter’s ARR and BSP rider for 2019-20. It requested the commission to pass through the financial effect of the review petition while approving the ARR and BSP for 2020-21.
Financial crisis
Rs 10,747.50 cr revenue requirement
Rs 7,623.84 cr to be earned from sale of energy
Rs 3,123.66 cr revenue deficit
Rs 2,093 cr outstanding loan liabilities