The Orissa High Court today rejected the plea of Orissa Electricity Regulatory Commission (OERC) to vacate the stay on power tariff hike for domestic consumers.
A division bench of the High Court comprising Justices B P Das and B K Mishra observed that as the court is currently hearing a public interest litigation (PIL) challenging the validity of the power tariff hike by OERC, the stay cannot be lifted now.
This has given relief to lakhs of domestic power consumers in the state.
The reasons cited by OERC in its petition was that if the stay on increased tariff for domestic consumers consuming electricity over 100 units per month is not vacated, the power distribution companies will lose Rs 223.86 crore per year.
OERC on March 18 had increased tariff for retail and commercial users in the state for 2011-12 with huge changes, citing higher power purchase cost. The new tariff order was to be effective from April 1, 2011.
A PIL challenging the commission's order was filed in the Orissa High Court on March 31 and the court had granted interim stay on OERC order, which was extended to July 5.
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On June 22, the High Court had vacated the stay on increase in power tariff for the commercial users, but continued the stay for domestic consumers.
According to the new tariff, High Tension (HT) industries will have to pay Rs 6.50 per unit in 2011-12, against Rs 5.30 per unit paid in the previous year. Similarly, tariff for Extra High Tension (EHT) industries was revised to Rs 6.40 per unit, up from Rs 5.10 per unit.
The state government had filed a review petition before the OERC to reconsider the power tariff hike. The commission, though rejected the government's petition on the grounds of insufficient and invalid clauses, slashed the retail electricity consumer tariff partially in a suo motu proceeding.
It reduced electricity charges for consumption between 50 and 100 units, by Rs 1.50 rupees to Rs 2.00 per units, keeping all other charges unchanged and said the new tariff will be applicable from April 1, once the court delivers its order on the PIL.