Hefty hike in power tariff

BHUBANESWAR: The Orissa Electricity Regulatory Commission (OERC) on Friday delivered yet another blow to consumers by effecting a hefty hike in power tariff. The revised tariff, if implemented, will make domestic consumers pay through their nose as rates have been hiked by a whopping 40 per cent for the first two slabs where most consumers are bracketed. As per the new rates, consumption of  first 50 units will be charged at Rs 2.20 per unit while the next slab of 50 to 200 units will be charged at Rs 3.90. For 200-400 units, a consumer will have to pay at the rate of Rs 4.90 whereas 400 units and above will be charged at Rs 5.30.This is for the third consecutive year that the commission has hiked the power tariff which could trigger string of reactions. The 2011-12 tariff hike is sub judice as the Orissa High Court has stayed the raise in the domestic category. Last year, the OERC had hiked the rates to Rs 1.40 per unit for 0-50 units, Rs 3.50 for 50-200 units, Rs 4.30 for 200-400 units and Rs 4.80 for 400 units and above.The fresh hike means that a consumer, who pays Rs 595 for consuming 200 units as per last year’s rate, will now pay Rs 695 for the same consumption. For those consuming 400 units, the bill will jump by about Rs 190.In its order, the commission attributed the main reason for tariff hike to the increase in number of electricity consumers, inadequate generation of low-cost hydro power to meet growing demands and rise in cost of coal and furnace oil which lead to increased generation cost.During 2004-05, about 57 per cent of power requirement of the State was met from low-cost State-owned hydro power stations. It has gone down to 27 per cent during 2012-13, the OERC said, adding that  rise in cost of coal and furnace oil has prompted the Central Thermal Generating Stations to increase their cost of sale of power to Gridco.The quasi judicial body cited the Appellate Tribunal of Electricity ruling setting aside the tariff orders of distcoms for 2010-11 and 2011-12 since the cross subsidy was not within the prescribed 20 per cent limit. Taking into account its observations, the fresh tariff has been fixed within 20 per cent of average cost of supply, which has been set at Rs 4.60.