BHUBANESWAR: Electricity consumers may face a sharp increase in their power bills next year with power utilities seeking retail tariff hikes that could push the prices up by nearly Rs 1 per unit.
After GRIDCO sought a hike of 58 paise unit in bulk supply price, six other power sector entities barring Odisha Power Generation Corporation (OPGC) have made a strong pitch for increase in their respective tariffs citing serious revenue shortfall. Acceptance of all proposals would result in an average hike of 98 paise per unit in retail electricity tariff which would ultimately be passed on to the consumers.
The seven power entities have projected a cumulative revenue shortfall of Rs 3,276 crore in the next financial year if the tariff approved by the Odisha Electricity Regulatory Commission (OERC) for 2025-26 remains unchanged.
Filing separate applications before OERC for annual revenue requirements (ARRs) and determination tariff for 2026-27, the Odisha Hydro Power Corporation (OHPC), Odisha Power Transmission Corporation Limited (OPTCL), GRIDCO and four Tata Power-managed distribution companies (TPCODL, TPNODL, TPSODL and TPWODL) have pressed for the hike.
OHPC, which operates six hydro power stations with a combined capacity of 2,040 MW, has projected a revenue requirement of Rs 644 crore for the next fiscal. To bridge a projected shortfall of Rs 83 crore (at current rate of tariff), it has sought an increase in the sale price of power to GRIDCO by 15 paise per unit, from 100 paise to 115 paise.
Estimating its revenue requirement at Rs 1,490 crore to transmit 41,850 million units through the state grid next year, OPTCL said the existing transmission tariff is expected to yield only Rs 1,067 crore resulting in a revenue shortfall of Rs 423 crore. The utility has sought an increase in transmission charges from 25.50 paise to 35.61 paise per unit. The company has also estimated an additional Rs 15 crore for meeting the operational cost of the State Load Despatch Centre (SLDC).
Tata Power’s distribution companies have jointly projected a revenue requirement of Rs 20,673 crore for electricity distribution in the state. The four utilities submitted a plan to purchase 39,104 million units from GRIDCO after accounting for 15 per cent distribution losses and sale of 33,315 million units to about one crore consumers. The sale will generate Rs 20,009 crore at existing retail tariffs. In order to meet the Rs 664 crore revenue gap, they have sought either a reduction in bulk supply prices or an increase in retail tariff.
OPGC, on the other hand, has proposed a reduction in its power generation price from its 420 MW (2x210 MW) IB Thermal Power Station for 2026-27. It has estimated a sale of 2,755 million units to GRIDCO from its stage-I power station and proposed a tariff of Rs 2.57 per unit, down from the approved Rs 3.13 per unit for the current year, to realise its projected revenue of Rs 707 crore.