GRIDCO pitches for 54 paise per unit hike in bulk supply tariff for 2025-26
BHUBANESWAR : Projecting its aggregate revenue requirement (ARR) at Rs 14,820.37 crore for 2025-26, the state-run power trading utility Grid Corporation of Odisha Limited (GRIDCO) has urged the Odisha Electricity Regulatory Commission to approve the bulk supply price (BSP) at 381.84 paisa per unit as against the current price of 328.20 paise per unit.
The demand for a hike of 53.64 paise per unit, which comes to 16.34 per cent, if approved, will push up the retail price and the extra burden will be passed on to domestic consumers who are already burdened with higher tariff after privatisation of the power distribution business.
Justifying the demand for a higher tariff, GRIDCO said it will face a revenue deficit of Rs 1,728 crore at the existing BSP as the income from the sale of ower to four distribution companies will be around Rs 13,092.36 crore.
Estimating the state’s energy requirement for the ensuing financial year at 40,117 million units including three per cent transmission loss, GRIDCO in its ARR and bulk tariff applications submitted to OERC said it has to pay higher cost of power during peak seasons particularly in summer months due to overdrawal of energy by the distribution companies (discoms) beyond their schedule.
“In such situations, GRIDCO is obligated to pay at a higher rate and suffers huge deficit due to additional costs as such are unforeseen and therefore could not adequately get compensated through the approved BSP,” the petition said.
The petition further said that the company has been facing cash deficits over the years due to non-cost reflective tariff in bulk supply price, revenue gap allowed in the ARR, disallowance of carrying cost on regulatory assets, outstanding BSP dues and other receivables from the erstwhile discoms prior to handing over the management to Tata Power.
“The petitioner has met these cash deficits over the years through working capital loans and also long-term borrowings. It has a total outstanding loans with principal obligations of Rs 5,969.89 crore as on September 30, 2024. The repayment liability for 2025-26 is Rs 1,001.78 crore towards loans taken from commercial banks and securitized dues of OHPC,” GRIDCO said.
In the tariff order for the current financial year, OERC had made downward revision of of the bulk supply tariff for GRIDCO from 329 paise per unit to 328.94 paise per unit while giving a relief of 10 paise per unit to domestic consumers.
