OERC to take up hearing on cross subsidy in power tariff

Acting on the directive of the Supreme Court, the Orissa Electricity Regulatory Commission (OERC) will take up hearing on the matter of cross subsidy in tariff for different categories of consumers in the state for 2010-11 and 2011-12 on November 24-25.

Upholding an order of the Appellate Tribunal for Electricity, the apex court on September 30, had directed OERC to calculate cross subsidy on the basis of cost of power supply to the consumers.

The apex court had given November 30 deadline to OERC to dispose of the matter.

When contacted by Business Standard, G Mathivathanan, secretary (energy) said, Grid Corporation of Orissa (Gridco) will be submitting its views to the regulator on the matter.

The appellate tribunal in its May 30 order had held that the methodology used by OERC for determination of cross subsidy was not in accordance with the law and it had set aside the tariff order passed by the commission.