BHUBANESWAR: As the Odisha Electricity Regulatory Commission (OERC) seems in favour of a cost-plus tariff, power consumers of the State will have to pay more for every unit consumed from the next financial year beginning April 1.
Discussions of the State Advisory Committee of the regulator indicate that determination of marginal cost-based electricity tariff is the need of the hour to tide over the financial crisis faced by Grid Corporation of Odisha Ltd (Gridco), the bulk power supplier to the State.
The Odisha Consumers’ Federation, an umbrella body of several associations in power sector, has already expressed apprehension of a hefty hike of Rs 1.5 paise per unit taking the existing power tariff from Rs 5.25 to Rs 6.75 per unit.
In a bid to provide relief to Gridco, the commission had effected an average annual bulk supply price of Rs 17.23 per unit for 2020-21 with an effective rise of Rs 20 paise per unit in retail supply tariff.
However, the revised tariff was made effective from October 1, 2020. The objective of the tariff hike was to bring down the revenue gap of Gridco from Rs 660.15 crore to Rs 341.15 crore.
With an outstanding loan of Rs 6,564.19 crore as on March 31, 2020 and estimating its repayment liability of Rs 1,164.97 crore in 2021-22, Gridco in its annual revenue requirement application had urged the Commission to allow cost-plus tariff.
Estimating total repayment liability at Rs 2,103.78 crore and interest due at Rs 1,079.75 crore, the State utility has proposed for a special appropriation of Rs 1,164.97 crore for recovery while loans payable to the government and NTPC bonds to be deferred.
“We understand that the Commission is conscious of the need for stability in tariff regime. Ensuring financial viability of efficient and proactive utilities should be the prime concern. At the same time safeguarding the interests of consumers becomes a major responsibility of the Commission, particularly, when the market structure and system conditions do not support competition,” said general secretary of All Odisha Electricity Employees’ Union AK Tripathy.
He said the federation will strongly protest any hike as the utilities have miserably failed to perform as per the set rules of the commission.
Financial burden
Rs 6,564 cr outstanding loan
Rs 2,103 cr total repayment liability
Rs 1,079 cr interest due