Power tariff in Odisha may go up from April

The power tariff in the state is set to rise again from April next as the Orissa Electricity Regulatory Commission (OERC) starts public hearing on tariff proposals of the distribution companies, bulk supplier Gridco, and generators, Odisha Hydro Power Corporation (OHPC), Odisha Power Transmission Company (OPTCL) from tomorrow.

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.

The Central Electricity Supply Utility (CESU) distribution company (discom) in charge power supply in the central part of the state, has projected a loss of around Rs 346 crore for the 2013-14 at the prevailing tariff rate. Hence, it has proposed12 per cent hike in tariff.

Similarly, the Reliance Infrastructure managed, North Eastern Electricity Supply Company (NESCO), Western Electricity Supply Company (WESCO) and Southern Electricity Supply Company (SOUTHCO) have forecast loss of Rs 1,134 crore, Rs 800 crore and Rs 150 crore respectively with the continuation of the present power rates. OERC had enhanced the power tariff by an average 11.84 per cent in April 2012. As per the hiked rates, the domestic consumers are now charged Rs 2.20 per unit for consumption of first 50 units. Similarly for the slab 50 to 200 units, the consumers are paying Rs 3.90, an increase of 40 paise. For 200-400 units and 400 units and above, the charges had been increased by 60 paise and 50 paise respectively.

Reacting to proposals of power utilities to increase tariff, Ramesh Satpathy, secretary, National Institute of Indian Labor, said, the slow progress in implementation of new power projects and insufficient fund allocation are the problems faced by the power sector. If the hike proposals are conceded, the power tariff in the state may go up to Rs 6 per unit, he said and alleged that water from hydro projects are being diverted to industries leading to increase in power costs.