In a significant development, the Orissa High Court on Friday refused to interfere with the decisions relating to electricity tariff hike.
While hearing a Public Interest Litigation (PIL) challenging the validity of the power hike by Orissa Electricity Regulatory Commission (OERC), a bench comprising of the High Court comprising of justices BP Das and B K Mishra ordered that the government should formulate policies for proper management of the water reservoirs and generation of hydro powers within three months.
The court further directed for collection of all outstanding electricity dues from various government departments and corporations by April end failing which energy supply will be disconnected with a notice of disconnection served at least seven days in advance.
The HC has also asked the state government to take steps to collect outstanding water cess dues from the companies within three months.
The court said, OERC and the state government should conduct enquiry into the instances of coal import by power plants when the state has abundant coal reserve. If the state is unable to do so, then court can appoint an independent authority to conduct this enquiry.
It may be noted, OERC on March 18, 2011 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 hiking power tariff by 40 per cent for all types of consumers was filed on March 31 last year in the High Court.
On June 22 last year, the HC had vacated the stay on increase in power tariff for the commercial users, but continued the stay for domestic consumers.
According to the OERC direction, High Tension (HT) industries had 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. But the commission, in suomotu proceedings, had later slashed the electricity charges for retail consumption between 50 and 100 units, by Rs 1.50 to Rs 2.00 per unit, keeping all other charges unaltered.
The HC order came close on the heels of the OERC’s new direction on power tariff hike for the 2012-13. As per the new rates, consumption of first 50 units will be charged at Rs 2.20 per unit while the next slab of 50 to 200 units will be charged at Rs 3.90. For 200-400 units, a consumer will have to pay at the rate of Rs 4.90 per unit whereas 400 units and above will be charged at Rs 5.30 per unit.
