BHUBANESWAR: In a major relief for households, the Odisha Electricity Regulatory Commission (OERC) has kept the state’s retail supply tariff (RST) unchanged for 2026-27 financial year, extending a five-year streak of stable electricity prices.
The move will benefit lakhs of households and small consumers as it comes in the midst of rising power procurement costs across the country.
Publishing the tariff order for the upcoming year, the OERC said the retail tariff has remained unchanged since 2022-23, despite a rise in the average power purchase cost of GRIDCO by 6.83 paise per unit and a slight increase in the overall cost of supply to 603.91 paise per unit.
Explaining the reasons why OERC chose not to pass on the additional burden to consumers, the tariff order said, “A combination of cost-management measures and strategic sourcing has enabled the state to maintain tariff stability. Key contributors include savings of around Rs 90 crore from reduced capacity and energy charges of OPGC Stage-I, downward revision of average tariff of OHPC by 2.01 paise per unit, translating into savings of nearly Rs 11.78 crore.”
In addition, the allocation of 5,036 million units (MU) of relatively cheaper power from Vedanta has helped soften the cost curve. Further easing the financial pressure on the system, the bulk supply price (BSP) has been marginally reduced by 0.15 paise per unit, it added.
The regulator said that transmission charges have also been rationalised, declining from 25.5 paise to 24 paise per unit, improving overall efficiency in power delivery.
In order to promote digital adoption and timely payments, OERC has introduced a set of consumer incentives. These include a four per cent rebate for LT domestic and single-phase general-purpose consumers making timely digital payments, and a similar rebate for prepaid consumers on recharge amounts. Consumers opting for e-billing will also receive a Rs 10 discount per bill.
On the financial side, the Commission has allowed all fixed costs under GRIDCO’s approved power purchase agreements and has accommodated a negative revenue gap of Rs 664.41 crore in the annual revenue requirement (ARR).
Industry observers say the move balances consumer interests with sectoral sustainability, particularly at a time when utilities nationwide are grappling with volatile fuel costs and rising demand. By absorbing cost pressures through regulatory adjustments, the state has positioned itself as a rare example of tariff stability in the power distribution landscape of the country.