BHUBANESWAR: As the Odisha Electricity Regulatory Commission (OERC) is all set to start public hearing for determination of power tariff for 2021-22 from Friday, the Tata Power-owned four distribution utilities have demanded revenue rationalisation to recover costs.
Projecting a revenue requirement of Rs 7,893.94 crore, a bulk of it (Rs 5,721.94 crore) going towards power purchase, the discoms have computed a revenue gap of Rs 1,310.24 crore at the prevailing tariff.
Taking the energy consumption pattern in the last few years, the distribution utilities have projected a growth of 8.24 per cent (pc) in energy demand from 25,140.13 million unit (revised estimate) in 2020-21 to 27,211.92 million unit in 2021-22.
Tata Power Central Odisha Distribution Ltd (TPCODL) has projected 8.31 pc sale growth on 2020-21 sales data for the ensuing year. The total revenue based on the existing tariffs applicable for the projected sales is estimated at Rs 3,532 crore (TPCODL), Rs 2,338.51 crore (TPNODL), Rs 3,398.31 crore (TPWODL) and Rs 1,470.21 crore (TPSODL).
The power purchase cost of these utilities include distribution loss which is 24.63 per cent for central Odisha, 19.05 per cent for northern Odisha, 21.27 per cent for western Odisha and 24.50 per cent for southern Odisha. In the annual revenue requirement application, TPCODL said it will have a revenue gap of Rs 623.33 crore at the existing tariff while erstwhile Nesco, Wesco and Southco have estimated revenue shortfall of Rs 313.31 crore, Rs 256.9 crore and Rs 116.7 crore respectively.
Having huge outstanding against LT category consumers and most of them are trying to get new connection by putting the old connection under permanently disconnected consumers (PDC) to avoid payment of arrears, the distribution licensees have requested the Commission to approve an arrear collection scheme for LT non-industrial category of consumers in line with one-time settlement (OTS) scheme earlier approved for 2011-12 year.
They have suggested to allow the defaulting consumers to pay their dues in six to 12 monthly instalments depending upon the outstanding and paying ability, benefit of withdrawal of DPS and certain percentage of waiver on outstanding amount.
The discoms have requested the OERC to approve the aggregate revenue requirement as projected in their application and bridge the revenue gap for 2021-22 through reduction in bulk supply tariff and grant of subsidy from the State government as per Section 65 of the Electricity Act, 2003.
The Commission had made a mid-year tariff revision by increasing the tariff by 20 paise per unit with effect from September, 2019.