Tariff in Orissa higher than WB, AP.
The recent power tariff hike announced by the Orissa Electricity Regulatory Commission (OERC) is set to have a debilitating effect on the industries operating in the state.
The burden of the revised tariff will be particularly more pronounced on the small scale industries where it will lead to industrial unrest and ultimate closure of such units, according to the city-based Utkal Chamber of Commerce & Industry (UCCI).
The industry body has also pointed out that the power tariff for industries in Orissa is higher compared to neighbouring states like West Bengal and Andhra Pradesh.
"The power intensive industries in West Bengal and Andhra Pradesh are paying a tariff of Rs 2.50 per unit, compared to Rs 4.45 per unit fixed by OERC in its tariff order for Orissa. The increased tariff for the industries compared to the tariff of 2009-10 is more than 50 per cent. It will be difficult for the industries in the state to survive with this tariff and will lead to closure of units and industrial unrest", Ramesh Mahapatra, president, UCCI told media persons here.
Stating that the generation companies in the state are increasing their power generation cost, leading to hike in power tariff, he said that OERC has not been able to rein in the rising cost of power as per the mandate given under the Indian Electricity Act of 2003.
The OERC has been determining a common tariff for HT, EHT and LT industries which is inconsistent with Regulation 80 of the Act, he added.
This apart, the industries drawing power at EHT (132 KV), and HT at 11 & 33 KV have been burdened with a substantial cross subsidy though the distribution companies are mandated to reduce subsidy.
For instance, the cost of supply for the HT consumers is Rs 3 per unit and tariff fixed is Rs 4.45 with the burden of cross subsidy being 90 paisa per unit. On the other hand, the EHT consumers are burdened with a cross subsidy of Rs 1.50 paisa per unit.
Mahapatra pointed out UCCI had filed its objections to the power tariff hike in detail on 12 March during the tariff proceedings of OERC."The inefficiency of the distribution companies in containing the transmission and distribution losses is loaded unreasonably on the consumers. Distribution companies are ending off with transmission and distribution losses of about 39 per cent against 22 per cent loss fixed by OERC for 2010-11. Against the state requirement of power procured by Gridco from the generating station including the Central power station which is about 22,000 million units, about four per cent is transmission loss and the balance 35 per cent is distribution loss", he added.
The power tariff hike was supposed to be effective from 1 April but the Orissa High Court, acting on a public interest litigation on last Thursday, has stayed the hike.
Alleging that electricity generation, transmission and distribution are being done in a very arbitrary manner by the private companies in the state without any transparency in their fund management, the PIL had demanded a CBI enquiry into the allegations.
In a notification issued by OERC, the power tariff was increased by nearly 20 per cent overall.
However, the move was particularly harsh on domestic consumers who were subjected to a 40 per cent hike.The domestic consumers now have to pay Rs 1.40 per unit for the first 50 units, instead of first 100 units as provisioned earlier.
Similarly, up to use of 200 units, they will now have to pay Rs 3.50 per unit while for consumption of electricity between 200 and 400 units, the tariff will be Rs 4.30 per unit. Consumers using above 400 units would be charged at the rate of Rs 4.80 per unit.
Earlier, consumers had to pay Rs 3.10 per unit to use up to 200 units and Rs 4.10 per unit for consumption beyond 200 units.
