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Hike proposed in power production cost

Updated: February 5th, 2016, 00:55 IST
in Uncategorized
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Bhubaneswar: The Orissa Hydro Power Corporation (OHPC) and the Orissa Power Generation Corporation (OPGC) have proposed a hike in production cost of power per unit for the 2016-17 financial year.
OHPC has proposed a 73 per cent hike in its power cost. It has urged Orissa Electricity Regulatory Commission (OERC) to increase its production cost per unit from the existing 82.57 paise to Rs 1.43. OPGC has also proposed a hike in production cost of power per unit from the existing Rs 2.10 to Rs 2.82 per unit.
The hikes were proposed at the OERC hearing on annual revenue requirement (ARR) and determination of generation of tariff for various power producing, purchasing agencies as well as distribution companies that began here Thursday. The hearing will continue till 11 February sources said.
OERC has reserved its order on the proposal of the two corporations.
Domestic consumers pay electricity tariff at a rate of Rs 2.50 per unit for consuming power below 50 units, Rs 4.20 between 51 and 200 units and Rs 5.20 between 201 and 400 units. If the proposals of OHPC and OPGC are accepted it would result in increased electricity tariff for the domestic consumers who have faced a 20 paise hike per unit this year.
Every year, power producing, purchasing agencies and distribution companies such as GRIDCO, OPTCL, OHPC, OPGC, WESCO, SOUTHCO, NESCO and CESU file their ARR report before OERC. The commission holds a public hearing on this in February and takes decisions on purchase of power, power distribution, electricity tariff per unit for the coming year towards the end of March.
All stakeholders, including the state government and electricity consumers are allowed to appeal for review before OERC of the commission’s decision.
The Orissa Rajya Bidyut Upavokta Mahasangh is opposing the power tariff hike proposal. The organization has been demanding a CAG audit of the accounts of these power bodies. PNN

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