By Bizodisha Bureau, Bhubaneswar, March 24, 2015 :

Odisha Electricity Regulatory Commission (OERC) on Tuesday announced across board hike of 20 paise per unit in energy charges to all classes of consumer barring agriculture sector effective from April 1.

The hike for agriculture sector has been pegged 40 paise per unit, OERC sources said. In comparison to the 2014-15 fiscal, there has been a hike of 4.64 percent in the average retail supply tariff; the order said adding that the monthly minimum charges and meter charges remain unchanged.

Leader of Opposition Narasingha Mishra of Congress said “The hike in the power tariff on farming sector proved that government’s lack of interest in the development of farmers.”

However, this rise of tariff compares favourably with the rise in the rate of inflation at 3.4% as on April-December 2014. There was no power tariff hike in 2014-15, he said.

“The principal reason for tariff hike in 2015-16 is due to the pass through of Rs 740.72 crore towards past power purchase dues of NTPC by Gridco as per CERC order dated May 15, 2014,” OERC secretary G K Dhal said in a statement.

OERC maintained that the tariff hike in 2015-16 is also due to increase in the number of electricity consumers, inadequate generation of low cost hydro power to meet growing demands and rise in the cost of coal and furnace oil.

The average tariff for domestic consumption of 50 units, 100 units, 200 units, 300 units, 400 units, 500 units and 600 units is Rs 2.50/ kwh, Rs 3.35/kwh, Rs 3.78/kwh, Rs 4.25/kwh, Rs 4.49/kwh and Rs 4.71/kwh and Rs 4.86/ kwh respectively, which is around 49 per cent, 31 per cent, 23 per cent, 13 per cent, 8 per cent, 4 per cent and 1 per cent less than the average cost of supply of Rs 4.88 approved by the commission.

A consumer is required to pay an average tariff of Rs 4.96 for the consumption of 700 units, which is 1.6 per cent higher than the average cost of supply, an OERC release said.

While the opposition parties criticised the power tariff hike, Energy Minister P P Das said an increase by 20 paise on domestic use will hardly hit the consumers.

BJP leader and MLA Pradip Purohit demanded immediate roll back of the power tariff as it would hit both consumers and the farmer.