GRIDCO’s proposal to raise bulk power tariff draws stiff opposition at OERC hearing

State-owned power utility GRIDCO has proposed a significant hike in the bulk supply price (BSP) of electricity for the 2026–27 financial year, drawing strong objections from consumer groups and industry representatives during the first day of public hearings held by the Odisha Electricity Regulatory Commission (OERC) on Monday.

In its aggregate revenue requirement (ARR) and BSP petition, GRIDCO sought approval for an average BSP of 388.23 paise per unit for FY27, marking an increase of 58 paise over the existing rate of 330.66 paise per unit.

According to the utility, it plans to sell 39,203 million units (MU) of electricity, mainly to the four Tata Power-operated distribution companies in the state. GRIDCO has projected a total power availability of 46,334 MU, resulting in a surplus of 5,918 MU, which it intends to sell in the open market.

GRIDCO has estimated its net revenue requirement at ₹15,181.08 crore, factoring in power purchase costs, financing expenses and establishment charges. At the current BSP, the utility projects a revenue gap of ₹2,260 crore, which it aims to bridge through the proposed tariff increase.

During the hearing, OERC Chairperson Pradeep Kumar Jena raised concerns over the decline in generation from the Indravati hydel project and frequent outages at the OPGC thermal power plant, seeking explanations from GRIDCO officials.

Consumer organisations and industry representatives strongly opposed the proposed hike, arguing that GRIDCO had not adequately utilised lower-cost power available from captive and independent power producers. They urged the Commission to explore more efficient power procurement and trading strategies to keep bulk tariffs under control and minimise the burden on consumers.

The OERC is expected to examine the objections raised during the hearings before taking a final decision on the BSP for FY27.