Reeling under high transmission charges, the Odisha government has appealed to the Union power ministry to scrap the PoC (Point of Connection) Regulation, 2010.
The state has demanded that the transmission charges be levied from the beneficiaries under the old methodology until a full proof transmission tariff regulation sensitive to distance, direction and quantum of flow as stipulated in the National Electricity and Tariff Policy is framed in letter and spirit.
"There are some serious flaws in the Regulation itself that defies the distance sensitivity concept of PoC. It seems that the distance parameter has not been factored in while determining the transmission tariff. Even for drawal of power from generators based in Odisha, the state is paying higher transmission charges than Delhi. Due to the flawed methodology, transmission charges levied on Odisha has more than doubled from Rs 12 crore to Rs 26 crore per year," said a senior government official.
The PoC charge has been in implementation since 2011. Although the stated purpose of 'PoC Method' is to make transmission tariff sensitive to distance, direction and quantum of power flow and gradual elimination of cross subsidy in inter-state transmission tariff sharing, the same is not followed in actual practice, he rued. For instance, Odisha pays 24 paise per unit, 26 paise per unit and 28 paise per unit as transmission charges for purchase of power from NTPC stations at Talcher, Farakka and Kahalgaon respectively. In contrast, Delhi, which is at a comparatively longer distance, pays 22 paise per unit, 24 paise per unit and 26 paise per unit respectively towards transmission charges for power procured from the same locations.
Transmission system planning and upgradation has been at the forefront of power agenda of the Odisha government. The state owned transmission utility, Odisha Power Transmission Corporation Ltd (OPTCL) has chalked out a Capital expenditure (Capex) plan of Rs 8,000 crore to build EHT (extra high tension) sub-stations and transmission lines during the 12th Plan (2012-17).
Moreover, to facilitate evacuation of power from the existing and upcoming power plants including the independent power producers (IPPs), the state has taken up the initiative to develop transmission infrastructure worth Rs 1,500 crore on the public private partnership (PPP) mode.
The state government has urged the Centre to focus on intra-state transmission networks and assist the utilities in upgradation and expansion of such transmission networks. The central support could also include assistance for State Load Despatch Centres (SLDCs) which are in dire need of technological upgradation.
