Odisha keeps power tariff unchanged for fifth year despite rising costs

Regulator retains electricity rates for FY27 despite rising procurement costs, offering relief to consumers while introducing incentives for digital payments and efficiency

Even as power tariffs see an upward spiral in several states due to rising coal prices, infrastructure, and linkage costs, Odisha consumers will continue to pay the same electricity rates for another year.

 

In a significant move, the Odisha Electricity Regulatory Commission (OERC) has kept the state’s retail electricity tariff unchanged for the 2026–27 financial year, cushioning consumers from mounting cost pressures, at least during the summer. This is the fifth consecutive year that the Commission has retained the existing slab-wise rates for domestic consumers.

 

As per the retail supply tariff (RST) notified on Wednesday, domestic consumers will continue to pay ₹2.9 per unit for the first 50 units, ₹4.7 per unit for consumption between 51 and 200 units, ₹5.7 per unit for 201–400 units, and ₹6.1 per unit beyond 400 units. The tariff will come into effect from April 1.

   

To encourage digital adoption, a rebate of 4 per cent has been introduced for consumers making timely digital payments. A similar rebate will be applicable to prepaid consumers on recharge amounts, while those opting for e-billing will receive a discount of ₹10 per bill.

 

Charging of electric vehicles through public charging systems or stations will be covered under the general purpose (GP) category, and a single-part tariff of ₹5 per unit will be applicable. Charging units established by group housing societies through separate connections will also be treated as public charging systems or stations.

 

All high-tension industrial consumers (steel plants) without captive generating plants (CGP), having contract demand (CD) of up to six MVA and above, will get a rebate of 10 per cent on energy charge on achieving a 65–75 per cent load factor, 15 per cent rebate on 75–85 per cent load factor, and 20 per cent on above 85 per cent load factor. Industries with CD above six MVA will get a rebate of 10 per cent on energy charge for achieving above 85 per cent load factor.

 

For aluminium industries (arc furnace) connected at 33 kV level without CGP, having CD of more than one MVA and up to 6 MVA, will be eligible for a rebate of 10 per cent on energy charge for entire energy consumption beyond 85 per cent load factor. All industrial consumers drawing power at extra high tension level will be eligible for a rebate of 30 paise per unit for all the units consumed beyond 80 per cent load factor.

 

Low-tension industrial (small and medium) consumers will avail a rebate of 10 paise per unit for all the units consumed if their monthly operating load factor is more than 30 per cent and the bill is paid within the due date.

 

“Any industry having CGP with CD above 20 MW willing to avail power from discoms and operating at a minimum monthly load factor of 60 per cent will be allowed to draw power at the rate of ₹5 per kVAh during peak hours and ₹4.3 per kVAh during hours other than peak hours, for all incremental energy drawal above 60 per cent load factor,” OERC ordered.

 

The order covers approval of Aggregate Revenue Requirement (ARR), wheeling tariff, retail supply tariff, open access charges, and truing up of expenses for previous financial years for all four distribution companies — Tata Power Central Odisha Distribution Limited (TPCODL), Tata Power Western Odisha Distribution Limited (TPWODL), Tata Power Northern Odisha Distribution Limited (TPNODL), and Tata Power Southern Odisha Distribution Limited (TPSODL).

 

The decision assumes significance as it comes amid a steady rise in power procurement costs across the country. Priyabrata Patnaik, secretary, OERC, said the average power purchase cost of GRIDCO has increased by 6.83 paise per unit, while the overall cost of supply has inched up to 603.91 paise per unit. Despite these pressures, the regulator chose not to pass on the burden to consumers. The retail tariff has remained unchanged since 2022–23, he said.

 

Explaining the rationale, the Commission in its order cited a series of cost-management measures and strategic sourcing initiatives. These include savings of around ₹90 crore due to reduced capacity and energy charges of Odisha Power Generation Corporation (OPGC) Stage-I, along with a downward revision of average tariff of Odisha Hydro Power Corporation (OHPC) by 2.01 paise per unit, resulting in savings of nearly ₹11.78 crore. Besides, allocation of 5,036 million units (MU) of relatively cheaper power from Vedanta Limited has helped moderate costs.

 

In a significant governance measure, OERC has requested the state government to undertake an audit of power distribution companies (discoms) by the Comptroller and Auditor General (CAG) of India to enhance accountability and financial discipline. The regulator has also issued a series of operational directives for improving efficiency and reducing losses.

 

“Even as Tata Power has a 51 per cent stake in the discoms, the Odisha government has a 49 per cent share. The proposed CAG audit would enhance transparency and financial management. The CAG can conduct financial, compliance, and performance audits to identify inefficiencies in discom operations,” said city-based power analyst Anand Mohapatra.

 

Odisha generates 25,000 megawatt (MW) of power, including 19,600 MW from thermal power plants, 2,100 MW of hydropower, 1,800 MW from independent power producers, and 1,500 MW from renewable, mini-hydro, and biogas sources.