Odisha to file review petition in OERC on power tariff hike

Faced with a barrage of criticism from the Opposition parties both within and out of the assembly premises on power tariff hike, the state government today said it would move the power regulator Odisha Electricity Regulatory Commission (OERC) to roll back the hike for the farm sector.

"The energy department has decided to file a review petition in the OERC. We will seek roll back of the hike announced for the farm sector keeping in view the farmers' interest. The state government will request OERC to adjust the roll back in hike through cross subsidy tariff order", energy minister Pranab Prakash Das told reporters in the assembly premises.

The concerns and sentiments of the house were also factored in while arriving at the decision, he added.

The minister's announcement came after an all-party meet convened today by assembly speaker Niranjan Pujari to break the imbroglio on the matter remained inconclusive. Proceedings at the house were paralysed for nearly a week with the Opposition unrelenting in its demand for withdrawal of electricity tariff increase.

"The government has partially accepted the demand of the Opposition. Had it been fully accepted, things would have been better. However, we will cooperate with the government for smooth functioning of the House," said Leader of Opposition Narasingha Mishra.

Last week, the OERC increased the tariff of electricity used for agricultural purpose by 40 paise a unit - a rise of 36 per cent for 2015-16. Power tariff hike for the farm sector was revised after a gap of 15 years.

The regulator 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.