OERC questions Tata Power’s cost recovery, smart meter plans

The Odisha Electricity Regulatory Commission (OERC) on Wednesday questioned Tata Power Central Odisha Distribution Ltd (TPCODL) over its plans to recover costs for distribution losses, smart meter deployment, and passing on the rising cost of employee salaries to consumers.

During the third day of the public hearing on TPCODL’s retail tariff proposal for 2026-27, the company sought approval for an aggregate revenue requirement (ARR) of Rs 6,851.69 crore, without proposing any tariff hike. TPCODL plans to purchase 13,248 million units (MU) of power from GRIDCO, projecting electricity sales of 11,241 MU and a distribution loss of 15.15%, an improvement over 17.17% in 2025-26. Despite this, the company forecasts a revenue deficit of Rs 189.47 crore, including Rs 113.91 crore in carrying costs.

According to a The New Indian Express report, OERC Chairperson PK Jena raised concerns over TPCODL’s aggressive push for new smart meters instead of upgrading existing static meters at lower cost, citing potential wastage of government subsidy. The Commission directed TPCODL to submit a detailed employee cost reduction plan, maintain a digital asset register, and fix accountability for loss-making feeders.

During the hearing, 29 objectors voiced their suggestions, while the regulator reiterated that electricity bills must be issued in Odia to ensure transparency and consumer clarity.