BHUBANESWAR: Because the Odisha Electrical energy Regulatory Fee (OERC) appears in favour of a cost-plus tariff, energy customers of the State must pay extra for each unit consumed from the following monetary yr starting April 1.
Discussions of the State Advisory Committee of the regulator point out that willpower of marginal cost-based electrical energy tariff is the necessity of the hour to tide over the monetary disaster confronted by Grid Company of Odisha Ltd (Gridco), the majority energy provider to the State.
The Odisha Customers’ Federation, an umbrella physique of a number of associations in energy sector, has already expressed apprehension of a hefty hike of Rs 1.5 paise per unit taking the prevailing energy tariff from Rs 5.25 to Rs 6.75 per unit.
In a bid to offer reduction to Gridco, the fee had effected a mean annual bulk provide worth of Rs 17.23 per unit for 2020-21 with an efficient rise of Rs 20 paise per unit in retail provide tariff.
Nevertheless, the revised tariff was made efficient from October 1, 2020. The target of the tariff hike was to deliver down the income hole of Gridco from Rs 660.15 crore to Rs 341.15 crore.
With an impressive mortgage of Rs 6,564.19 crore as on March 31, 2020 and estimating its compensation legal responsibility of Rs 1,164.97 crore in 2021-22, Gridco in its annual income requirement software had urged the Fee to permit cost-plus tariff.
Estimating complete compensation legal responsibility at Rs 2,103.78 crore and curiosity due at Rs 1,079.75 crore, the State utility has proposed for a particular appropriation of Rs 1,164.97 crore for restoration whereas loans payable to the federal government and NTPC bonds to be deferred.
“We perceive that the Fee is aware of the necessity for stability in tariff regime. Guaranteeing monetary viability of environment friendly and proactive utilities needs to be the prime concern. On the similar time safeguarding the pursuits of customers turns into a significant accountability of the Fee, significantly, when the market construction and system situations don’t assist competitors,” mentioned basic secretary of All Odisha Electrical energy Workers’ Union AK Tripathy.
He mentioned the federation will strongly protest any hike because the utilities have miserably didn’t carry out as per the set guidelines of the fee.
Rs 6,564 cr excellent mortgage
Rs 2,103 cr complete compensation legal responsibility
Rs 1,079 cr curiosity due