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Orissa Electricity Regulatory Commission hands tied on power tariff

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The Orissa Electricity Regulatory Commission (OERC) expressed its inability to redetermine power tariff for 2010-11 and 2011-12 in view of the stay on the revised tariff for the current fiscal and pendency of tariff-related cases in legal fora. ‘’Redetermination of tariff for the financial years 2010-11 and 2011-12, as per AppellateTribunal for Electricity (ATE) order, is not feasible at this stage in view of the stay on revised tariff for 2011-12 on domestic consumers by the Orissa High Court as well as pendency of the bulk supply tariff (BST), transmission charges and retail supply tariff (RST) orders for 2010-11 and 2011-12, challenged in the appellate tribunal by the licensee,’’ said the three-member commission headed by chairman Mr.S.P. Nanda.

The regulatory commission, however, determined the voltage-wise cost of supply and calculated cross-subsidy in tariff on the basis of cost of supply to different categories of consumers for both the financial years. The cross subsidy in tariff for 2011-12 has been reduced in comparison to 2010-11 and the tariff of each voltage-wise consumer has been calculated on the basis of the average cost of supply keeping the cross subsidy in declining trend from year to year,the OERC order said.

‘’This order is subject to the result of appeal filed by Central Electricity Supply Utility (Cesu) before the Supreme Court and the outcome of the writ petition pending in the Orissa High Court as well as the appeal filed in ATE by Gridco, discoms (distribution companies) and others against the BST, transmission charges and RST orders for 2010-11 and 2011-12,’’ the regulatory commission said.

The implementation of the ATE order would entail re-fixation of retail tariff for different categories of consumers. The re-fixation of tariff would change the annual revenue requirement (ARR) of discoms which would in turn result in re-fixation of BST of Gridco and transmission charge of OPTCL and charge of the State Load Despatch Centre (SLDC), the commission said.

In two separate orders on May 30 2011 and September 2 2011, the ATE had directed OERC to redetermine the cross subsidy for different consumers after determining the cost of supply voltage wise.
Policies & Regulations | News published on 25 / 01 / 2012 by Moulin Oza

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