BHUBANESWAR: Projecting its net annual revenue requirement (ARR) of Rs 15,184.41 crore for 2026-27, GRIDCO, the bulk power supplier to the state, has asked for a hike of 58 paise per unit in the bulk supply price (BSP) to the Odisha Electricity Regulatory Commission (OERC).
If GRIDCO’s request for BSP hike is approved by OERC, it will have a cascading effect on retail tariff, impacting nearly one crore electricity consumers of the state who have been insulated from tariff hike for the past four years.
Filing its ARR application for the ensuing financial year, GRIDCO submitted that average power purchase cost (APPC) for procurement of 40,415.95 MU at a total estimated cost of Rs 14,503.08 crore has been computed at 358.85 p/kWh to meet the gross energy demand of 39,103.47 MU by the four power distribution companies (discoms) managed by Tata Power. The trading company has also taken into account the three per cent transmission loss into account.
Estimating a revenue earning from the discoms at Rs 12,921.39 crore at the existing BSP of 330.66 paise per unit from sale of proposed energy of 39,103.47 MU during 2026-27, GRIDCO said it will face a revenue deficit of Rs 2,259.69 crore if the proposal for a hike in the BSP is not considered by the commission.
The applicant further submitted that the total dues receivable from the erstwhile discoms CESU, NESCO, SOUTHCO and WESCO as on September 30, 2025 stands at Rs 6,395 crore. As a result, the GRIDCO had to borrow funds from external sources to meet its power supply obligation.
Noting that it has outstanding loan liability of Rs 5,176 crore as on September 30 this year, GRIDCO said loans from different banks are to the tune of Rs 1,576 crore, soft loans from the state government amounting to Rs 3,213 crore and OHPC securities dues of Rs 387 crores need to be repaid. The company has planned to liquidate the existing external borrowings over the next four years, commencing from 2026-27.
“Unless the projected cash gaps are adequately addressed through appropriate financial support, GRIDCO’s liquidity position will be severely constrained, adversely impacting its ability to meet debt obligations and ensure timely payments to generators,” the applicant said justifying the demand for a BSP hike.
OERC had given a marginal hike of only two paise per unit for 2025-26 in order to keep the retail consumer tariff unchanged while managing a revenue gap through power trading.