Experts stress on raising power tariff in state

Consumers in Orissa should be prepared to pay a higher tariff if they want to enjoy an uninterrupted supply of power.

With the state grappling with a power shortfall, Grid Corporation of Orissa Limited (Gridco), the state power utility has to buy power at a higher cost to tide over the power shortage and this situation demands that the consumers need to pay more. This was stated by experts at a national workshop on 'Tariff Setting Vis-a-Vis Sustainable Development of Power Sector in Orissa'. B K Misra, member, OERC said, “To meet the power shortage, Gridco has to purchase high cost power from different sources as well as through the power exchanges. In this scenario, the consumers of Orissa must be prepared to pay a higher tariff failing which the uninterrupted supply of power cannot be ensured.”

Stressing the need for hike in power tariff, Prafulla Chandra Ghadei, the state finance and excise minister said, “Orissa is the only state in the country which has not hiked power tariff in the past eight years. Gridco has to procure power at a higher cost and this higher cost have to be borne by the distribution utilities and ultimately by the consumers.”

He pointed out that Gridco has purchased power at 1.85 paise per unit during April-September 2009 against the average procurement cost of 1.22 paise per minute approved by OERC.

T K Mishra, the state Chief Secretary said, “The power tariff in the state has not been revised since 2001 even though the cost of electricity supply has increased tremendously. The power sector will develop only when the cost of power supply is realized from the consumers.”