Odisha electricity body hikes retail power tariff by 20 paise per unit

Power consumers in the State will have to pay higher power tariff of 20 paise per unit for the next six months of the current fiscal with effect from October 1, 2020. 

Published: 24th September 2020 08:29 AM  |   Last Updated: 24th September 2020 08:29 AM   |  A+A-

Power supply, Electricity

For representational purposes. (File photo | Reuters)

By Express News Service

BHUBANESWAR: Power consumers in the State will have to pay higher power tariff of 20 paise per unit for the next six months of the current fiscal with effect from October 1, 2020. The Odisha Electricity Regulatory Commission (OERC) on Wednesday revised the bulk supply power tariff for Gridco by six per cent with consequential effect on the retail supply tariff (RST).

The average rise in RST for 2020-21 will be 3.90 per cent (annually) over 2019-20. Retail consumers except Kutir Jyoti (BPL consumers) and agricultural consumers will thus pay 20 paise more per unit in energy charge. The average cost of supply for Discoms has increased from 499.71 paise/unit in 2019-20 to 524.62 paise/unit for 2020-21.

The Commission has fixed 270 paise/unit up to 50 units, 450 paise/unit for consumption above 50 units and up to 200 units, 550 paise/unit above 200 units and up to 400 units and 590 paise/unit above 400 units in the domestic category.

The two per cent rebate over and above normal rebate will be allowed on the bill to the LT domestic and single phase general purpose category of consumers who pay through digital means. This rebate will be applicable on the current month bill if paid in full, the order said.

The rural LT domestic consumers will get 5 paise per unit rebate in addition to existing prompt payment rebate if they pay the bill in time.The regulator revisited the tariff order issued on April 22 following an application by Gridco, the bulk power supplier, requesting for revision in the annual revenue requirement and bulk supply price (BSP) in view of the huge gap between revenue requirement and income.

The Commission had approved net ARR of Rs  8,274.98 crore with an average BSP of 271.09 P/U against Gridco’s proposal of Rs  11,243.72 crore (BSP rate of 398.89P/U).The gap in the ARR has been allowed by the Commission to provide relief to the consumers considering Covid-19 situation. The regulator had assured to revisit the order if the situation improves during the current financial year.

“Even after revision, the gap in the ARR of Gridco remained at Rs  341.15 crore against Rs  660.15 crore allowed earlier for this year,” the OERC order said.The average BSP is revised to 287.70 paise per unit for the next six months as against 271 paise per unit. The average power purchase cost will be 278.57 paise per unit for FY 2020-21 as against 259.88 in FY 2019-20. The Commission had not allowed power tariff hike consecutively for three years since 2018-19.


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