Consumers Denied Concessional Electricity Rates Despite Agreement Terms

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Bhubaneswar: In Odisha, the above-mentioned persons could get electricity at affordable prices and continuous supply. However, even though Odisha is a state, its consumers have not received such benefits. Compared to other states, consumers pay higher electricity tariffs and also frequently face power cuts.

An important point is that according to the memorandum of understanding (MoU) with OPGC (Hindalco India Thermal Power Ltd.), electricity is not supplied at concessional rates. Gridco buys power at a higher rate. Meanwhile, no additional payments have been made. On this sensitive issue, the Odisha Electricity Regulatory Commission (OERC) has reviewed the matter and directed Gridco for a solution in March.

It was expected that if the state government signed an MoU with Jindal company for coal mines or MCL in 2006-07, Odisha would receive electricity at 50% concessional rates (only for variable cost), but this did not happen. During the COVID-19 pandemic, power sales were completely stopped for small consumers. It is noteworthy that in 2022, the price was increased twice by 50 paise per unit for consumers.

There was a legal case filed in the court regarding uninterrupted power supply in 2014. The High Court, after government intervention, ordered that from May 1, 2024, Jindal would sell 120 MW electricity to Gridco at the old rate of Rs. 3 per unit. Energy analyst Anand Mahapatra stated that Odisha consumers are still not receiving electricity at 50% concessional rates, and Gridco has not raised any complaint.

According to the agreement, Jindal was supposed to sell 144 MW electricity to Odisha at 50% concessional rates (12%), but due to coal shortages, the company distanced itself from Odisha and the High Court’s order in 2018. From June 2019 to May 2022, consumers faced frequent power cuts.

Due to the complicated power issues, the government took steps to resolve it. The Odisha High Court, by an interim order, directed Jindal to sell 120 MW electricity to Gridco at Rs. 3.36 per unit (old rate). However, the company supplied only 60 MW at full price from May 2022. In 2023, Gridco has been paying Rs. 3.36 per unit to Jindal.

Odisha consumers have been charged an additional Rs. 0.66 per unit, resulting in an extra Rs. 168 crore burden on them. Last year, consumers were cheated by an extra bill of Rs. 1008 crore.

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