Gridco Proposes Significant Power Price Increase in Odisha
Bhubaneswar: Gridco, the state's primary bulk power supplier, has formally approached the Odisha Electricity Regulatory Commission (OERC) seeking a substantial increase in electricity rates. During the first day of public hearings held on Monday, Gridco requested a hike of 57.57 paise per unit in the bulk supply price (BSP), sparking discussions about potential impacts on consumers across the state.
Financial Projections for 2026-27
The commission, chaired by Pradeep Kumar Jena, heard Gridco's detailed presentation of its aggregate revenue requirement (ARR) and bulk supply price application for the upcoming financial year 2026-27. In its comprehensive submission, Gridco outlined ambitious financial projections and operational plans that would significantly affect Odisha's power landscape.
According to Gridco's estimates, the company anticipates selling approximately 39,203 million units (MU) of energy to various power distribution companies and captive generating plants operated by two major companies. This substantial volume represents the backbone of Odisha's electricity distribution network and underscores Gridco's critical role in the state's energy infrastructure.
Power Availability and Trading Plans
Gridco's projections reveal an interesting dynamic in Odisha's power sector. The company expects to have access to 46,334 MU of energy from diverse sources during the 2026-27 period. After meeting the state's estimated requirement of 40,416 MU, Gridco plans to trade the surplus power of approximately 5,918 MU in the open market.
This surplus trading strategy represents a significant aspect of Gridco's revenue generation plan and demonstrates the company's efforts to optimize resource utilization while meeting state obligations.
Revenue Requirements and Pricing Structure
The financial implications of Gridco's proposal are substantial. The bulk power supplier has projected a net revenue requirement of Rs 15,181 crore for the 2026-27 financial year. To achieve this financial target, Gridco has proposed setting the average bulk supply price at 388.23 paise per unit for the upcoming financial period.
This proposed rate represents a notable increase from the approved rate of 330.66 paise per unit for the current 2025-26 financial year. The difference highlights the significant upward adjustment Gridco believes necessary to maintain operations and meet future energy demands.
Public Hearing and Stakeholder Responses
Following Gridco's analytical presentation, the commission heard from various stakeholders concerned about the proposed rate increase. A total of 16 objectors presented their views on Gridco's ARR and BSP application, expressing concerns about potential consumer impacts and questioning various aspects of the proposal.
Notably, the energy department's representative also participated in the proceedings, adding an important governmental perspective to the discussion. During the hearing, OERC chairperson Pradeep Kumar Jena made a significant suggestion to the government representative, asking the energy department to consider taking over a loan exceeding Rs 700 crore currently held by Gridco.
This strategic recommendation aims to prevent the loan amount from being passed on to consumers through increased tariffs, potentially mitigating some of the financial burden on electricity users across Odisha. The government official present at the hearing responded cautiously, indicating that he would need to discuss this substantial financial matter with higher authorities before providing a definitive response to the commission.
Hearing Schedule and Decision Timeline
The public hearing process is scheduled to continue until February 21, providing additional opportunities for stakeholders to voice their concerns and suggestions regarding Gridco's proposal. This extended hearing period reflects the commission's commitment to thorough examination of all aspects of the rate increase request.
After completing the comprehensive hearing process, the Odisha Electricity Regulatory Commission plans to issue its final order on March 23. This decision will determine whether Gridco's proposed rate increase receives approval, partial approval, or rejection, ultimately shaping Odisha's power pricing structure for the 2026-27 financial year.
The outcome of this regulatory process will have far-reaching implications for consumers, businesses, and the overall economic landscape of Odisha, making it one of the most closely watched developments in the state's power sector.
