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Bhubaneswar, Jan 5: The Orissa Electricity Regulatory Commission (OERC) would take a decision on revision of power tariff in the state, Energy secretary Suresh Chandra Mohapatra said Monday.
“OERC will take a final call on the issue of tariff fixation,” Mohapatra said adding, “The quasi-judicial body will fix electricity tariff for domestic consumers and industries as well for years.”
There was resistance as the power distribution companies (discoms), especially those managed by Reliance Energy, expressed dissatisfaction over the power tariff fixed by OERC five years ago and moved the Appellate Tribunal for Electricity (ATE) against the tariff.
The ATE in its verdict, meanwhile, has ordered OERC to quash the existing tariff and fix a new tariff with retrospective effect.
Sources said, OERC has been reducing tariff to cut down distribution losses by 21 per cent. The discoms, on the other hand, have been arguing that they were sustaining huge losses due to such move.
Sources said, the tribunal has directed compensation of Reliance Energy managed discoms such as Nesco, Southco and Wesco by revising power tariff with retrospective effect from 2006-07.
The order, if implemented, will burden 50 lakh electricity consumers across the state by over `4000 crore. The cost of electricity can go up to `5 or `6 per unit which will be effective retrospectively.
Earlier, Energy minister Pranab Prakash Das had made it clear the government has no role in the tariff fixation process.
The Energy Secretary said, “The appeal made by OERC against ATE order is pending in the Supreme Court. So, a decision in this regard may come after the final verdict of the apex court.”
He however said, “The state government, as a party will participate in OERC hearing and put forth its argument.”
