BHUBANESWAR, India: Odisha’s principal bulk power supplier has moved to revise electricity pricing for the 2026-27 financial year, sparking robust objections from consumer advocates and industry stakeholders during regulatory hearings.
The Grid Corporation of Odisha (GRIDCO) has filed its Aggregate Revenue Requirement (ARR) and Bulk Supply Price (BSP) petition before the Odisha Electricity Regulatory Commission (OERC), seeking approval to increase the average bulk supply price to 388.23 paise per unit for FY27. The current approved BSP stands at 330.66 paise per unit, making the proposed revision an increase of approximately 58 paise per unit.
GRIDCO’s submission indicates that, after factoring in around three percent transmission losses, total state consumption is expected at 40,416 million units (MU) during the year. The utility has projected power sales of about 39,203 MU to distribution companies, with additional emergency supply.
In its estimate, GRIDCO anticipates total power availability of 46,334 MU from various sources at an average procurement cost of 347.57 paise per unit, leaving a surplus for open market trading. The company has calculated a net annual revenue requirement of about ₹15,181 crore, after adjusting for miscellaneous income.
GRIDCO officials have underscored that the recommended tariff revision is necessary to bridge a projected revenue gap of roughly ₹2,260 crore that would emerge at the current BSP level given rising power purchase costs and other expenses.
However, the first day of public hearings before the OERC witnessed significant opposition. Consumer groups argued that GRIDCO has not fully leveraged lower-cost power available from captive generating plants and independent producers within the state, suggesting that more efficient procurement and trading strategies could mitigate the need for higher BSP.
Representatives from major industrial sectors including steel and manufacturing also expressed reservations, highlighting concerns that an uplift in bulk prices would eventually flow through to retail tariffs, affecting households and businesses alike. They urged the regulator to ensure pricing remains competitive to safeguard industrial growth and economic stability.
OERC officials raised queries over diminished generation from key low-cost sources such as the Indravati hydro project and flagged operational disruptions at the Odisha Power Generation Corporation’s thermal units, linking these factors to higher power procurement costs. The regulator has directed the Energy department to address these issues.
Stakeholders including business chambers and consumer associations participated in the hearing, underscoring the breadth of engagement on the issue. The Commission will continue hearing submissions before taking a final decision on the proposed tariff, which will influence electricity pricing and power sector finances in Odisha for FY27.
