Power cost set to rise in Orissa

 In a conditional tariff order for 2003-04, the Orissa Electricity Regulatory Commission (OERC) has stated that the tariff rates are bound to go up if the government does not take over the loan servicing liability of Grid Corporation of Orissa (Gridco) to the tune of Rs 93 crore per annum.

 While approving the annual revenue requirement for the bulk and retail supply licensees, the commission stated that in case the government of Orissa does not accept the Parekh Committee recommendations on liability liquidation of electricity boards, the revenue requirement of Gridco for 2003-04 will increase by Rs. 94.08 crore, thereby leading to rise in the bulk supply tariff (BST) to the tune of 7.80 paise/unit over a period of 12 months and consequent increase in all Orissa average Retail Supply Tariff (RST) of 11.45 paise/unit.

 But any possible tariff hike will only be limited to the subsidised and sensitive domestic consumer sector with the industrial and commercial consumers being spared from the impact. It may be noted that there was no tariff hike in Orissa for last two years.

 According to an estimate, domestic consumers will have to pay 40 paise more per unit for the first 100 units of consumption and 30 paise per unit for the next 100 units. The existing tariff in the first slab is Rs 1.40 per unit.

 Similarly, in the second slab the unit cost will go upto Rs 2.60 as against the existing rate of Rs 2.30 per unit. There will no change in the rate of tariff for consumption beyond 200 units. The distribution companies had demanded a hike ranging from 35 per cent to 40 per cent.

 The commission has set December 22 as the deadline for the government to inform about its decision on taking over the Gridco liability. In case of the government refusal to so, the new hiked tariff rates will come into effect from January 1, 2004.