The Orissa Electricity Regulatory Commission (OERC) has slashed electricity charges for usage up to 50 units after getting subsidy assurance from the state government while rejecting the government petition for review of power tariff hike.
Dismissing the review petition, it said, the government has not given sufficient reason to roll back the tariff hike. The regulator took the decision in a suo motto proceeding.
On March 18, the commission had fixed the tariff at Rs 3.50 per unit (kw per hour) for using electricity upto 50 units. But, as per the recent order, consumers will have to pay Rs 2.00 per unit. The commission, however, did not change tariff for usage above 50 units.
The order of the commission is subject to the outcome of the writ petition pending before the Orissa High Court.
The High Court had on May 9 stayed the revised electricity tariff for the current financial year. “Since the State Government has expressed its intention of giving subsidy to compensate for the loss of the distribution companies (discoms) on account of reduction of tariff for domestic consumers from Rs 3.50 per unit to Rs 2 per unit (for consumption of 51 to 100 units per month), the case is taken up for consideration under Section 65 of the Electricity Act, 2003,” the OERC said in a tariff order.
The government in an affidavit has assured the commission to compensate for the loss of the distribution companies by reducing the bulk supply tariff of Gridco by 5 paise per unit and by providing a share capital of Rs 108 crore. However, OERC maintained that if the loss occurred by distribution companies surpasses the government estimate of Rs 108 crore, then it would demand additional financial assistance from the government.
“GRIDCO shall adjust the claim of discom on account of financial benefit given to the ultimate consumers from the upfront payment received from the state government and shall make a demand of the balance payment of Rs.68 crore from the state government once the initial payment of Rs.60 crore is made,” the regulator said in the order.
The commission justified its demand for higher subsidy than mentioned by the state government saying the number of domestic consumers estimated by the government at 12 lakh is against the commission’s estimate of 33 lakh. The OERC order will retrospectively come into effect from April 1.
