Odisha gov’t wants discoms to cut AT&C losses – The New Indian Express
BHUBANESWAR: All stakeholders except the state government have opposed the proposed 30% increase in bulk supply tariff for 2022-2023 from the current average of 296 .29 per unit to 385.21 paise per unit, during Gridco’s Annual Revenue Requirement (ARR) and Bulk Supply Rice (BSP) hearing here on Saturday.
The state government, which made a disappearing act during the public hearing for the determination of the electricity tariff until last year, has urged the Odisha Electricity Regulatory Commission (OERC) to ensure that Gridco’s commercial viability is not jeopardized when passing the Wholesale Supply Tariff Order.
“OERC has been requested not to place any orders that affect the commercial viability of @GridcoOdisha as the long-term energy security and development of the State depends on the operational viability of Gridco,” the department tweeted after its submission. .
The Department of Energy asked the Board at the hearing not to increase the retail rate as proposed by the distribution companies operated by Tata Power (Discoms) for 2022-23. He called on the Commission to take into account the revenue surpluses of Discoms during the current year.
The department further requested the OERC to order Discoms to reduce aggregate technical and commercial (AT&C) losses more quickly so that consumers benefit from reduced rates. The government has urged to remove the rebate on intrastate transmission and transmission charges on renewable energy which does not benefit industries as a whole.
In his remarks, BJD MP for Khandapara Soumya Ranjan Patnaik strongly opposed Gridco’s demands, saying the Electricity Act 2003 does not allow the state utility to file an ARR for tariff determination. , nor that the OERC is given any powers/functions under the provisions of the Act. Act to admit the ARR.
Objecting to OERC approval for the purchase of excess power over the actual needs of Discoms over the past few years, Patnaik said the excess approval of 3,180 MU and 3,463 MU at the during fiscal years 20 and 21 increased the retail supply tariff by 60 P/U and 65 P/U respectively.
Citing a report published in The New Indian Express on October 14, 2021, the BJD lawmaker said Gridco suffered huge losses in the sales deal with Vedanta for trading the excess electricity without considering the price of High Market Clearing (MCP) from Power Exchange. This requires the immediate attention of the Commission and the state government in the process.
Gridco argued that the state government has resumed the de-allocation of power purchase agreements with central thermal power plants, where the cost of electricity is high, to ensure that consumers in Odisha benefit from an uninterrupted supply at an affordable electricity rate, with the Centre.