BHUBANESWAR: Projecting a net revenue requirement of Rs 10,745.42 crore for 2021-22, the State-run bulk power trading utility GRIDCO has requested the Odisha Electricity Regulatory Commission (OERC) to approve an average bulk supply price of 393.39 paise per unit against the existing price of 287.70 per unit.
GRIDCO's demand for a 45.55 per cent (pc) hike in the bulk supply price (BSP) was strongly opposed by industries and consumer groups at the public hearing by OERC on Tuesday for determination of tariff for the ensuing financial year.
Arguing for a cost based tariff, GRIDCO submitted that it has an outstanding loan of Rs 6,564.19 crore as on March 31, 2020 with repayment liability of Rs 1164.97 crore due in 2021-22. "Due to non-cost reflective BSP, disallowance of carrying cost on regulatory assets and huge receivables, the loan liability has increased over the years," GRIDCO said.
Estimating total repayment liability at Rs 2103.78 crore and interest due at Rs 1079.75 crore, the State utility has proposed for a special appropriation of Rs 1164.97 crore for recovery and deferring loans payable to the State government and NTPC bonds.
GRIDCO proposes to meet loan liability from profit (trading margin) out of sale of surplus power as directed by the Commission in its previous orders. As the trading margin will be very low due to present market conditions, GRIDCO requested to create a separate mechanism to meet net repayment liability post adjustment of margin.
The State PSU has proposed to procure 28,221.67 million unit (MU) of power for 2021-22 considering transmission loss of 3 pc. Estimating the total energy availability at 35,290.03 MU from all sources, it said the average cost of power would be 305.89 paise per unit.
GRIDCO will earn a revenue of Rs 1,464.70 crore from trading surplus power. With the power purchase cost coming to Rs 10,795.03 crore, it has to recover the balance Rs 9,330.34 crore from the distribution companies (discoms).
"The company will suffer a revenue deficit of Rs 2,899.02 crore considering the proposed average revenue requirement (ARR) of Rs 10,745.42 crore and revenue earning of Rs 7,846.41 crore from sale of 27,315.02 MU to discoms during 2021-22 at the existing BSP," GRIDCO said.
Objecting to the demand of GRIDCO, trade and industries said higher power cost will make power intensive industries unviable as they have suffered huge loss due to the COVID-19 pandemic situation.
Representatives of consumer groups said OERC compensated Gridco loss by revising tariff in June. Since all sectors are affected by the pandemic and the general public is bearing the brunt of the price hike of all commodities, further hike in tariff will be the last straw on camel’s back.