OERC hikes power tariff in Odisha

Odisha Channel Bureau Bhubaneswar, Mar 24: Odisha Electricity Regulatory Commission (OERC) today announced an across the board hike in electricity tariff in the State.The tariff order for the financial year 2015-16 will be effective from April 1, 2015.While there has been a marginal rise of 20 paise per unit in case most of the retail consumers except agriculture, agriculture tariff has been raised 40 paise per unit after 15 years.The average rise in retail supply tariff for 2015-16 is 4.64% over 2014-15, according to OERC.There was no tariff rise from 2001-02 to 2009-10.The tariff rise during 2010-11, 2011-12, 2012-13 and 2013-14 were 22.20%, 19.74%, 11.84% and 2.40% respectively.There was no tariff rise during 2014-15, said OERC.According to the OERC tariff order: • Reliability surcharge has been reduced from 20 paise per unit to 10 paise per unit.• TOD benefit has been increased from 10 paise per unit to 20 paise per unit.• Power factor incentive above 97% has been reintroduced.• There is no change in Monthly Minimum Fixed Charge (MMFC) and Demand Charge.• There is no change in meter rent.• Kutir Jyoti (BPL consumers) will pay Rs.80/- per month for consumption of 30 units per month for the FY 2015-16 instead of Rs.65/- per month.• The Commission has not accepted the proposed ARR of DISCOMS of Rs.10,797 Cr.and approved an amount of Rs.9,160 Cr.• The Commission has approved the distribution loss of 21.35 % against the proposed distribution loss 33.19% by DISCOMs.Similarly, the Commission has approved AT&C loss of 22.14 % instead of 35.29 % proposed by DISCOMs.• While rejecting the proposal of DISCOM’s proposed AT&C loss, the Commission has approved 22.14% AT&C loss taking into account all efficiency parameters and carrying out the prudent check on the data/information furnished by DISCOMs.The tariff could have been increased manifold, if the loss proposed by DISCOMs have been accepted.• Cross subsidy has remained within ±20% for all categories(LT/HT/EHT)• The average cost of supply for DISCOMs has increased from 461.07 Paise/unit in 2014-15 to 488.81 paise/unit in 2015-16.• No change in transmission charges during 2015-16, remained same as 25 paise per unit as in 2014-15.• The average power purchase price of GRIDCO has increased from 227.05 Paise/unit in 2014-15 to 229.97 Paise/unit in 2015-16 against the Gridco’s proposal of 259.50 Paise/unit.• Average BSP of the State has increased from 263.21 paise/unit in 2014-15 to 284.29 paise/init in 2015-16 against the GRIDCO’s proposal of 356.32 paise/unit.• The BSP rise is primarily attribute to the pass through of past power purchase dues of NTPC as per the CERC order dated 15.05.2014.GRIDCO, as per CERC order has proposed an amount of 956.35 Cr towards payment of fixed cost component of NTPC-TTPS units for the period from 2009-2014 and FY 2014-15.The Commission has approved 740.72 Cr.for the period 2009-14.Out of 18 instalments allowed for payment of the claimed amount, GRIDCO has already paid 10 instalments during the FY 2014-15 and balance 8 instalments will be paid during 2015-16.For this reason, GRIDCO has submitted before the Commission to allow the same in the AAR and tariff for the FY 2015-16 as a pass through.• Out of average bulk supply price of 284.29 paise /unit of GRIDCO, CESU is required to pay 285.00 paise/unit, NESCO 302.00 paise/unit, WESCO 310.00 paise/unit and SOUTHCO 200.00 paise/unit.All the distribution companies to pay 25 paise/unit as Transmission cost to OPTCL.• While approving the average cost of supply as 488.81 paise for the FY 2015-16, the Commission has fixed 250 paise/unit upto 50 units, 420 paise/unit for the consumption above 50 units & upto 200 units, 520 paise/unit for the consumption above 200 units & upto 400 units and 560 paise/unit for the consumption above 400 units for the domestic category.The tariff approved by the Commission for the above slab in domestic category during FY 2014-15 was 230 paise/unit (upto 50 units), 400 paise/unit (above 50 units less than 200 units), 500 paise/unit (above 200 units less upto 400 units) and 540 paise/unit (above 400 units)• Average tariff for domestic consumption of 50 units, 100 units, 200 units, 300 units, 400 units, 500 units and 600 units is Rs.2.50/ kwh, Rs.3.35/ kwh, Rs.3.78/ kwh, Rs.4.25/ kwh, Rs.4.49/ kwh and Rs.4.71/ kwh and Rs.4.86 respectively, which is around 49%, 31%, 23%, 13%, 8%, 4% and 1% less than average cost of supply of Rs.4.88 approved by the Commission.A consumer is required to pay an average tariff of Rs.4.96 for the consumption of 700 units which is 1.6% higher than the average cost of supply.Reasons of Tariff hike:Pass through of past power purchase cost: The principal reason for tariff hike in 2015-16 is due to the pass through of Rs.740.72 Cr.towards past power purchase dues of NTPC by GRIDCO as per the CERC order dated 15.05.2014.Less low cost hydro Power:- The tariff hike in 2015-16 is also due to the increase in number of electricity consumers, inadequate generation of low cost hydro power to meet growing demands & rise in cost of coal and furnace oil, which ultimately lead to increased generation cost.