SALIENT POINTS OF ELECTRICITY TARIFF 2003-04

Retail Supply Tariff - (RST)

• Principle of Long Term Tariff Strategy has been adopted with initial control period of 4 years i.e. from FY 2003-04 to FY 2006-07, treating FY 2003-04 as the transition period. This means that for the said control period, principles of tariff-setting shall remain unaltered. But tariff-setting can be done as per S. 26 of OER Act. A separate order in this behalf has been passed by the Commission on 18.06.2003 and filed with the tariff orders before the Hon'ble Court.

• Aggregate Technical and Commercial (AT&C) loss has been prescribed as the performance parameter combining distribution loss and commercial efficiency. This is a concept introduced for the first time in Orissa for the reason that true measure of the loss should comprehend technical and all forms of commercial losses due to want of billing efficiency, collection efficiency, theft etc. This concept stresses cash flow and liquidity of the licensees.

• Uniform RST has been adopted for all consumers throughout the State.

• No change in Retail Supply Tariff which has remained constant since 1st February 2001. In other words, there has been decrease in tariff in real terms, if inflation is factored into the calculation. The Retail Supply Tariff remains constant subject to State Govt's acceptance of Correctives applied by OERC, based on Parekh Committee recommendations, otherwise the all Orissa average Retail Supply Tariff will rise by 11.45 p/u which will be reflected only in 1st two slabs of Domestic Tariff as shown in Annex (C-1).

• The 2003-04 Tariff Order for RST envisages some changes as detailed below :-

  • All Kutir Jyoti consumers to be provided with metered supply of electricity.

  • In case the consumption in respect of Kutir Jyoti consumers exceeds 30 units per month, the entire consumption shall be charged at the prevailing domestic tariff.

  • Load factor billing to be withdrawn from 1st April 2004 subject to amendment of the OERC Distribution Code, thereby permitting billing based on actual reading through metered supply.

  • Distribution licensees have been directed to complete 100% consumer metering by 31st March 2004 and feeder metering by 31st October, 2003.

  •  Rebate @1% allowed to all the categories of consumers excepting Domestic, Commercial, Irrigation and Small Industry for payment made within 3 days from the date of presentation of the bill. For such excepted categories (i.e. Domestic etc.) a rebate @ 10 paise per unit shall be allowed if payment is made by the due date or within 7 days from receipt of the bill. 

  • Delayed Payment Surcharge (DPS) @2% will be levied on domestic, commercial, irrigation and small industries categories of consumers, if payment is not made within the due date.

  • The rate applicable to energy consumed in industrial colony is to be limited to 10% out of the first slab of 50%, with the result that industrial consumer gets the benefit of a lower tariff towards colony consumption. 

  • Penalty / Incentive on overdrawal will be applicable in accordance with the stipulations in ABT. The technical requirement is that during high frequency, the load (consumption) should be increased and vice versa in order to keep the system stable.

  • Consumer can own the meter by paying its legitimate cost, if he/she so desires, in one instalment or can pay meter rent till the landed cost is recovered.

  • Introducing tariff for emergency supply to CPPs at HT @400 paise/unit as energy charge without any demand charge, in case they restrict their drawal to 25% of the unit having the highest rated capacity.

  • Introducing tariff for emergency supply to CPPs/ Generating Stations - Flat rate tariff for industries owning CPP/Generating Stations, @420 paise/unit at EHT and 440 paise/unit at HT.

  • Reconnection charges Rs.50, Rs.100, Rs.200 and Rs.1000 for single phase domestic consumers, single phase other consumers, 3 phase line, HT and EHT line respectively.