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Home News Power Sector News CESU request OERC for steep tariff revision of domestic consumers

CESU request OERC for steep tariff revision of domestic consumers

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OrissaThe Central Electricity Supply Utility (CESU) of Orissa has asked for upward revision of tariff and reconsideration of the subsidy granted to agro-industries in view of higher foreign exchange earning. Arguing in favour of increased tariff before the Orissa Electricity Regulatory Commission (OERC) which heard the annual revenue requirement, CESU said it will face a revenue shortfall of Rs 60 crore in 2009-10 in the existing tariff regime.

The existing tariff for domestic consumers is Rs 1.40 per unit for the first 100 units, Rs 2.30 per unit for next 100 units and Rs 3.10 for energy consumption of more than 200 units.Instead of the existing three slabs for domestic consumers, CESU has proposed six slabs. The utility proposed Rs 1.40 per unit for the first 50 units and Rs 1.80 for the next 50 units. For consumption between 100 to 150 units, the proposed tariff is Rs 2.70 a unit and Rs 3.10 for the next 50 units.The unit rate for consumption of more than 200 units is Rs 3.50 as against the existing Rs 3.10 per unit.

If approved by the OERC, the power bills of domestic consumers will go up significantly. The central utility has further requested the commission to allow the transmission and distribution (T&D) loss level at 37.49 per cent, a reduction of 3.5 per cent against the current fiscal.

The T&D loss of the utility in the current fiscal is 41.1 per cent. Projecting its energy requirement for 2009-10 at 6,045 million units, the company will sell 3,977 MU given the projected T&D loss of 37.49 per cent.

Estimating its annual revenue requirement at Rs 1,299 crore during 2009-10, CESU said it will have a revenue earning of Rs 1,239 crore at the prevailing tariff resulting in a shortfall of about 70 crore.

The utility further requested to withdraw the subsidy given to agro-industries which are mostly export oriented sea food processing units. These units are also getting various tax benefits from the Government. Due to dollar appreciation, these units are earning huge profit, the CESU officials said. 

Source - Express News Service


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