OERC hikes farm power tariff by 36%

Average retail tariff across sectors goes up by 4%

The Odisha Electricity Regulatory Commission (OERC) has increased the tariff of electricity used for agricultural purpose by 40 paise a unit — a rise of 36 per cent — for FY16.

OERC has also increased the rates for other category of consumers in the state for FY16. The average rise in retail supply tariff is 20 paise a unit, which works out to 4.2 per cent hike over the current rates, across all slabs. The new rates will be effective from April 1.

The revised tariff of power used for agricultural purposes will be Rs 1.50 a unit, compared to Rs 1.10 a unit, which was last fixed in 2000. Consumers belonging to the below-poverty-line (BPL) category will now have to pay Rs 80 a month, compared with Rs 65 earlier, for 30 units.

“The principal reason for the tariff hike in 2015-16 is due to pass-through of Rs 740.72 crore towards past power purchase dues of NTPC by Gridco. The tariff hike is also due to the increase in the number of electricity consumers, inadequate generation of low-cost hydro-power to meet growing demands and rise in cost of coal and furnace oil,” the regulator said in its tariff order. As bulk power trader, Gridco passed on the payment burden to power distribution companies (discom), the average cost of power supply for all discoms jumped to Rs 4.88 a unit, up from Rs 4.61 a unit.

The opposition parties in the state criticised the move, terming the decision ‘anti-farmer’. In response, state energy minister Pranab Prakash Das said: “I do not think the power tariff hike will burden a common man more than Rs 10-20 a month. Farmers will have to pay an additional Rs 40-50 a month based on the new tariff. We’re setting up a separate feeder for agricultural purpose and once it is operational, the actual burden on the farmers will be less.”

For industrial users, the OERC has allowed some benefits such as additional power up to 20 per cent more than the contract amount during off-peak hours without having to pay penalty. Similarly, reliable surcharge, applicable for high tension and extra high tension consumers, has been halved to 10 paise a unit.

Power transmission charges and open access charges for short-term consumers have been kept unchanged in the tariff order, providing relief to power generators using the network of Odisha Power Transmission Corporation.