No hike in power tariff in Odisha during 2016-2017- OERC
22 March, Bhubaneswar
The Odisha Electricity Regulatory Commission (OERC) has announced no hike in electricity tariff for the year 2016-17 in the state for any categories of consumers.
OERC sources here said the decision was taken Monday taking into account the proposals filed by the utilities, advice of the State Advisory Committee, opinion of the state government and conducting a Public Hearing.
The tariff was not hiked as OERC expected that about 1064 MU of power will be reduced in EHT sales in comparison to last year. The reduction of sales resulted in less drawal of costly thermal power from the Central Sector Generating Stations.
Accordingly, the price at which DISCOMs purchase power from GRIDCO (BSP) got reduced. Since power purchase cost constitute a major percentage of tariff there is no requirement of increasing the tariff although the numbers of subsidized categories of consumers have increased,the OERC opined.
The Commission passed the Aggregate Revenue Requirement (ARR) and Tariff Order for the FY 2016-17 yesterday which will be effective from April one.
The transmission charges will remain same as 25 paise per unit as in last year and there would be no change in transmission charges during 2016-17 financial year.
The average cost of supply of DISCOMs has decreased from 488.81 Paise/unit in 2015-16 to 480.40 paise/unit in 2016-17 and there would be no change in meter rent.
Cross subsidy has remained within 20 per cent for all categories–LT/HT/EHT and the average power purchase price of GRIDCO has slightly decreased from 229.97 Paise/unit in 2015-16 to 229.44 Paise/unit in 2016-17 against the GRIDCO’s proposal of 271.97 Paise/unit.
Average Block Supply Price (BSP) of GRIDCO has decreased from 284.29 paise/unit in 2015-16 to 273.14 paise/unit in 2016-17 against the its proposal of 362.62 paise/unit. The decrease of BSP is primarily attributing to reduction of imported cost of coal and reduction of industrial consumption.
Reduction of energy consumption of about 1064 MU has been estimated in case of EHT consumers for FY 2016-17 due to industrial recession in comparison to FY 2015-16 , resulting in less purchase of high cost power from generators.
Due to reduction of EHT consumption, the revenue earning from such consumers has been reduced and also power purchase burden has also reduced. Accordingly, the BSP is reduced.Out of average BSP of 273.14 paise /unit of GRIDCO, CESU is required to pay 270.00 paise/unit, NESCO 297.00 paise/unit, WESCO 296.00 paise/unit and SOUTHCO 197.00 paise/unit. All the distribution utilities have to pay 25 paise/unit as Transmission cost to OPTCL.
The Commission has approved about Rs.100.00 crore for AT in order to have an appropriate Energy Accounting procedure and to identify/plug the revenue leakages A& C loss reduction activities including energy audit. The Commission has also directed the DISCOMs to complete pole scheduling, consumer indexing and distribution network mapping lined with indexed consumer for such purpose.
As the approved quantum of renewable energy is not adequate to meet the Renewable Purchase Obligation for FY 2016-17 the Commission has provisionally allowed Rs 30.00 crore in the ARR of GRIDCO for FY 2016-17 exclusively towards purchase of additional quantum of Renewable Energy.
The Commission has rejected the proposed ARR of DISCOMs amounting to Rs 11,519 Crore. and approved Rs 9, 272.76 Crore only.
The Commission has approved the distribution loss of 21.34 per cent against the proposed distribution loss of 30.64 per cent by DISCOMs. Similarly, the Commission has approved AT&C loss of 22.13 per cent instead of 32.82 per cent proposed by DISCOMs.
The 2006 Tariff Policy, stipulated that the tariff should be within 20 per cent of the average cost of supply. Hence, average tariff of any consumer should not be more than 576.48 paise and less than 384.32 paise.
With this mandate, the Commission has fixed 393.36 paise in case of LT), 575.86 paise for HT and 572.36 paise for EHT.
The Commission, for the first time has determined the generation Tariff of OPGC and approved the purchase of 2861.51 MU @ 208.81P/U in place of OPGC proposal of 282.72P/U for FY 2016-17.