BHUBANESWAR: The Odisha Electricity Regulatory Commission (OERC) on Wednesday asked Tata Power Central Odisha Distribution Ltd (TPCODL) to justify the reason for recovery of cost towards distribution loss, smart meter deployment and burgeoning employees’ salary from the consumers.
On the third day of the public hearing, the Commission took up TPCODL’s application for determination of retail tariff for 2026-27. In its aggregate revenue requirement (ARR) application, TPCODL has proposed a net revenue requirement of Rs 6,851.69 crore without seeking any tariff hike.
The company plans to purchase 13,248 million units (MU) of power from GRIDCO and projected electricity sales of 11,241 MU during FY27. The utility projected a distribution loss of 15.15 per cent, an improvement over the approved loss level of 17.17 per cent for 2025-26, as per its vesting order.
TPCODL, however, projected a revenue deficit of Rs 189.47 crore, which includes a carrying cost arising from an additional serviceable liability of Rs 113.91 crore, while maintaining that it was not proposing any increase in consumer tariffs.
OERC chairperson PK Jena, however, sought clarity on the company’s aggressive push to install smart meters at consumer premises while not prioritising smart metering within its own distribution system.
Raising concerns over expenditure efficiency, Jena sought to know why the distribution utility is opting to procure new smart meters instead of converting existing static meters into smart meters at lower cost, as followed in states like Karnataka, and whether such decisions were leading to wastage of government subsidy.
The Commission issued several directions to the distribution company during the hearing. It asked TPCODL to submit a clear employee cost reduction trajectory, including costs related to personnel engaged through business associates. The regulator also directed the utility to maintain a digital asset register covering assets created by the government and subsequently transferred to TPCODL.
Emphasising operational accountability, the Commission instructed TPCODL to identify loss-making areas and feeders and ensure that responsibility is fixed on the officers or employees concerned. It also reiterated its earlier directive that electricity bills must be provided to consumers in Odia language.
A total of 29 objectors placed their views and suggestions on record during the public hearing.