Delay in filing business plans casts shadow on new power tariff for financial year 2024
In that case, the distribution licensee should have filed the business plan for OERC approval by end of 2022.
Published: 29th January 2023 11:22 AM | Last Updated: 29th January 2023 11:22 AM | A+A A-
BHUBANESWAR: With only three days left for the power distribution companies for filing of long-term business plan for determination of multi-year tariff (MYT) - none of the four utilities managed by Tata Power has complied with the new regulations of the Odisha Electricity Regulatory Commission (OERC) - leaving consumers of the state unsure of the new tariff order for 2023-24.
As per the Odisha Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022, the distribution licensee is required to file business plan not less than 120 days before the commencement of the first year for approval of commission and determination of MYT for a period of five years commencing from 2023-24.
In that case, the distribution licensee should have filed the business plan for OERC approval by end of 2022. Only two months are left for OERC to determine the power tariff for the ensuing financial year.
Even as the four distribution utilities of Tata Power have filed their annual revenue requirement (ARR) and retail supply tariff applications for 2023-24 well in time, OERC asked them to file revised applications pending finalisation of terms and conditions for determination of tariff under Electricity Act 2003.
After gazette notification of new regulations for determination of wheeling and retail tariff, the four discoms filed fresh applications.“The commission has invited objections and suggestions to the revised ARR and tariff applications filed by the discoms from stakeholders by February 10. We failed to understand how can the commission determine the tariff for the coming fiscal without approving their business plans and devising a multi-year tariff as enunciated by section 61 of the Electricity Act, 2003,” said power analyst Ananda Mohapatra.
Besides, OERC has not completed truing up of expenses and revenue of the discoms of the previous financial year in accordance with the new regulations framed as per the Supreme Court order, he added.
He said the Supreme Court had ordered the state commissions to be guided by the principles prescribed in section 61 of the Electricity Act which also includes the National Electricity Policy (NEP) and National Tariff Policy (NTP) while framing guidelines on determination of tariff. He said truing up of revenue expenditure of the discoms is highly essential for determination of tariff in a prudent manner.