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OERC cancels tariff hearing amid protests

In the judgement, the tribunal has directed OERC to recognise the unsustainable distribution loss incurred by the discoms and asked OERC to recover the same through tariff hike

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BS Reporter Bhubaneswar
Last Updated : Feb 09 2015 | 9:17 PM IST
The state power regulator Odisha Electricity Regulatory Commission (OERC) today cancelled its public hearing proceeding after protesters demanded a probe by the CAG (Comptroller and Auditor General of India) into the operation of private power distribution companies (discoms) and strongly opposed the likely hike in power tariff following an order of the Appellate Tribunal for Electricity (ATE).

"The ATE has imposed Rs 5,500 crore burden on the consumers. If its order is implemented, the consumers have to pay increased tariff with retrospective effect from 2006," said Panchanan Kanungo, chairman, Electricity Consumers Association of Odisha.

In a recent judgement, the ATE has directed the state power regulator to raise electricity tariff in the state after accepting the contentions of Reliance Infrastructure managed discoms - North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco).

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In the judgement, the tribunal has directed OERC to recognise the unsustainable distribution loss incurred by the discoms and asked OERC to recover the same through tariff hike.

"CAG should audit the books of all the private discoms operating in the state. They say, they are incurring losses but we can vouch that they are reaping profits. We demand the discoms to shoulder the burden of Rs 5,500 crore from the amount they owe to the state government," said Bhrigu Buxipatra, leader, Bharatiya Janata Party (BJP).

Consumers including intellectuals, activists and politicians raised slogans demanding CAG audit of private discoms at the entrance of the OERC, forcing the regulator to suspend the public hearing.

"The very propose of public hearing is to enable the general public to put forth their grievances and suggestions before the commission. The public hearing of State Load Despatch Center (SLDC) was scheduled today. The commission will take a final call whether to scrap the public hearing or to defer it," said OERC secretary Gopal Krushna Dhal.

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First Published: Feb 09 2015 | 8:18 PM IST

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