File picture of a power distribution centre

Cuttack, April 19: The Orissa Electricity Regulatory Commission (OERC) has filed an affidavit in Orissa High Court indicating that there would be substantial loadshedding in the state because of the restrictions imposed on collection of enhanced power tariff for 2011-12.

In a preliminary counter affidavit to a PIL, the OERC said if there was no hike in bulk supply price (BSP) to keep the retail tariff constant, Gridco would have to provide power to the distribution companies (DISCOMs) at the pre-revised rate of 168.77 paise per unit instead of the revised rate of 231.65 paise.

“It would result in under recovery of 62.88 paise per unit or Rs 1,413.35 crore for the year for 22,477 mega units purchased by the DISCOMs. Therefore, Gridco would not be able to pay the generators Rs 1,413.35 crore for the year on an average Rs 117.79 crore per month towards its power purchase dues,” Pravakar Swain, secretary of the OERC said in his affidavit filed on Monday.

Spelling out implications of the high court’s interim order staying collection of the hiked tariff, the OERC stated: “This may lead to load regulation by the generators which would impact the DISCOMs by way of loadshedding of around 6,720 mega units for the year or 767mw per month.”

“In other words, around 30 per cent load is to be restricted for the state which includes both subsidised and subsidising categories of consumers,” the affidavit stated.

On March 31, the two-judge bench of Justice B.P. Das and Justice B.K. Mishra issued the interim stay order on a PIL which had challenged the OERC’s order enhancing tariff of electricity for 2011- 2012 from April 1.

The OERC further claimed that “public interest will be severely prejudiced if the tariff order is not implemented, as it will result in revenue gap”.

“Since most power procurement processes are contractual agreements, a default or failure on part of the Gridco to meet its contractual commitments with generators will result in termination / suspension of power supply in the state,” the affidavit stated.

The commission said the increase in power purchase cost is primarily linked to increase in cost of fuel, transportation and other incidental costs. “There is no option but to pass on these costs to the consumers like in the case of petrol, diesel and kerosene,” it said.

“Similarly, when the Orissa Power Transmission Corporation Limited (OPTCL) invests in upgradation of the grid sub-stations, power transformers or construction of new grid sub-stations and transmission lines, it is to service the loans obtained from different financial institutions and this has to be recovered in form of transmission charges from the distribution companies, and is ultimately passed on to the consumers,” the affidavit said.

“While safeguarding interest of the consumers it is, at the same time, required to ensure recovery of the electricity cost in a reasonable manner,” the OERC said, adding, “When conditions permitted, the state commission did not increase tariff for almost nine years”. The electricity tariff for domestic consumers has been fixed at Rs 3.50 for the 50 to 100 unit slab in place of Rs 1.40. Similarly, for the 100 to 200 units and 200 to 300 unit slabs it has been increased from Rs 3.10 to Rs 3.50 and Rs 4.10 to Rs 4.30, respectively.

“Though the distribution companies are showing distribution loss of 37.54 per cent during 2010-11 provisionally up to September 2010 and have projected distribution loss of 34.8 per cent for 2011-12, the commission, while determining the annual revenue requirement (ARR) and tariff, has adopted distribution loss of 21.71 per cent. Thus, it is not correct to say that the high loss incurred by distribution loss is being loaded to the consumers,” the OERC said.