BHUBANESWAR: The State-owned Odisha Power Generation Corporation (OPGC) has demanded 20 paise hike on power generation cost for 2020-21 over the price approved by Odisha Electricity Regulatory Commission (OERC) for the current fiscal.Projecting its annual revenue requirement (ARR) for ensuing financial year at Rs 712 crore, OPGC which runs two thermal power units with generating capacity of 210 MW each in Jharsuguda district has requested the Commission to approve its proposal while fixing generation cost at Rs 2.67 per unit.
The Commission had fixed the generation cost at Rs 2.47 per unit for 2019-20. In effect, OPGC is asking for a hike of 20 paise per unit. The Grid Corporation of Odisha Limited, the bulk power trading wing of the Government, is the sole buyer of power from OPGC.Though the State Government held the majority stake of 51 per cent in OPGC, the US-based AES Corporation with 49 pc share has the management control of the company. The thermal power generating company has proposed the annual fixed cost of Rs 249.3 crore considering the original project cost at Rs 1,060 crore.
It further requested OERC to take into account Rs 162.25 crore towards additional capitalisation for renovation of the two units made from 2015-16 to 2020-21.OPGC claimed additional capitalisation of Rs 21.58 crore for 2020-21 to improve the life of the power plant which is more than 25-years-old.
This was strongly objected by four objectors as the proposed cost, if approved by OERC, will be recovered from the consumers. The objectors sought to know from OPGC if the cost will be recovered in one year, and if so, what will be the life expectancy of the plant. Considering the annual capitalisation of Rs 140 crore from 2015-16 to 2019-20, the annual fixed cost of OPGC increases to Rs 281.18 crore. The company further proposed to recover Rs 72.55 crore provisionally from consumers towards reimbursement of other charges, including water cess and income tax.