BJD chief Soumya slams Odisha power body over tariff framework – Reuters
BHUBANESWAR: Chief BJD leader and Khandapara MP Soumya Ranjan Patnaik has strongly criticized the Odisha Electricity Regulatory Commission (OERC) for not following the principle of multi-year tawwwriff (MYT) framework, as the Central Regulatory Commission and other states have done so. .
Presenting its submission before the OERC which heard the Aggregate Revenue Requirement (ARR) and Tariff Applications of the state-owned Odisha Hydro Power Corporation (OHPC) and the Odisha Power Generation Corporation (OPGC) for 2022-23 in virtual mode, Patnaik said OERC Generation Tariff Regulations -2020 specifies about MYT in accordance with Section 61(f) of the Electricity Act 2003 and Section 5 of the National Tariff Policy.
“Under the MYT principle, the production tariff is determined for a period of five years subject to adjustment in the next tariff period or in the mid-period decided by the Commission. CERC and other SERCs of India follow the above principle to determine the tariff while OERC is an exception,” Patnaik said.
He said the MYT framework minimizes risk to utilities and consumers, promotes efficiency, ensures appropriate reduction of system losses and attracts investment. It brings greater predictability to the consumer tariff as a whole by limiting tariff adjustments to known indicators of electricity purchase prices and inflation indices.
The MYT framework covers the capital investments needed for renovation and modernization and an incentive framework to share the benefits of improved efficiency between utilities and beneficiaries with reference to revised performance standards specific to set by the appropriate commission.
In the absence of MYT and verification, the generation tariff cannot be prudent and realistic as policy makers wanted when passing the Electricity Act 2003 Notification Bill. While the OHPC said the ARR was filed based on the latest information available from verified accounts, OPGC attempted to evade the MYT approach. “As CERC and all SERCs follow the MYT approach, I urge the Commission to implement the same in the procedure to determine the tariff,” he said. Patnaik is the first sitting lawmaker from a ruling party to challenge electric utility tariff demands.