Gridco proposes 40% increase in BSP

State run bulk power purchaser, Gridco has proposed the state power regulator Odisha Electricity Regulatory Commission (OERC) to hike bulk supply price (BSP), the rate at which it sells power to distribution companies (discoms), by about 39.48 per cent for 2013-14.

The power purchaser has prayed to enhance the existing BSP from 271 paise per unit (ppu) to 378.74 ppu. The regulator today started the public hearing on tariff proposals of the power utilities to fix the rates for 2013-14.

Gridco has proposed to procure 26,221.42 million units (mu) of electricity from different sources such as thermal power stations, hydro power stations and renewable energy generators at a total cost of Rs 6,837.67 crore to meet the electricity demand of the state during the next fiscal.

The increased BSP rate includes 282.20 ppu for purchase of power, 93.48 ppu for debt obligations and servicing and 3.06 ppu towards miscellaneous expenses (including 2.67 ppu and 0.39 ppu for return on equity and establishment charges respectively), said Bibhu Mohapatra , Director finance , Gridco.

The bulk power trader has projected its annual revenue requirement (ARR) at Rs 9,584.79 crore against Rs 6,950.64 approved by the commission for the current fiscal. ARR includes power purchase cost of Rs 7,159.16 crore, debt obligation and servicing of Rs 2,348.68 crore and Rs 76.95 crore towards miscellaneous expenses. The debt obligation for past liabilities has been pegged at Rs 1,768.51 crore and the debt servicing charges at Rs 580.17 crore.

Gridco aims to purchase 18,260.67 mu from the state-run power producers while 7,960.76 mu will be procured from the central utilities.

As many as 12 objectors have filed their objections and suggestions opposing the hike in BSP.

Opposing the Gridco proposal, Ramesh Chandra Mohapatra, former director (commercial), Gridco said as Odisha Hydro-power Corporation (OHPC) is unable to generate the projected quantity of power, the bulk trader is purchasing power at a higher cost. He also pleaded for urgent steps to recover the outstanding dues of Gridco from discoms.

Similarly, OHPC has proposed to sale 5,619.24 mu energy during 2013-14 at an average tariff of 69.77 ppu, which is 1.2 percent lower than 70.62 ppu charged in 2012-13, without considering the upvaluation of assets. The hydro-power generator has proposed ARR of Rs 392.05 crores, including Upper Indravati power station, for the coming financial year compared to Rs 396.83 crores approved for the current fiscal.

The Commission heard the matter at length and reserved its decision. The hearings, which will be held in eight sittings, will continue till 28th February.

The OERC is expected to give its verdict on March 23 and the new rates will be effective from April 1, 2013.