Bhubaneswar: Power trading utility Grid Corporation of Odisha Limited (GRIDCO) has proposed to increase bulk supply price (BSP) at 381.84 paisa per unit from the current rate of 328.20 paise per unit for 2025-26.
GRIDCO has urged the Odisha Electricity Regulatory Commission (OERC) to approve 53.64 paise hike per unit while projecting an aggregate revenue requirement (ARR) of Rs 14,820.37 crore for the coming fiscal, sources said.
If approved, the 16.34 per cent hike will increase 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 in the state.
Stressing the need 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 power to four distribution companies will be around Rs 13,092.36 crore.
Putting the state’s energy requirement for the coming 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 as the distribution companies (discoms) will draw more than 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, TNIE reported quoting the GRIDCO petition.
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 securitised dues of OHPC, GRIDCO said.
In the tariff order for the current financial year, OERC had made downward revision 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.
