OERC asks Tata Power-owned discoms to file revised ARR, retail tariff applications

BHUBANESWAR: Even as the four distribution utilities of Tata Power have filed their annual revenue requirement (ARR) and retail supply tariff applications for 2023-24 well in time, the Odisha Electricity Regulatory Commission (OERC) has allowed them to file revised applications pending finalisation of terms and conditions for determination of tariff under Electricity Act 2003.

“In exercise of power vested under regulation 53 of the OERC (Conduct of Business) Regulations, 2004 liberty is hereby given to Discoms to file their revised ARR and tariff applications within 15 days of gazette notification of the new regulation,” said a notification of the commission.

The notification came in the wake of a November 23 order of the Supreme Court directing all state regulatory commissions to frame regulations under section 181 of the Electricity Act on the terms and conditions for determination of tariff within three months from the date of the judgment.

Though OERC is confident of finalising the new regulation by end of this year, experts in power sector said the new regulation needed the approval of the Assembly. Since the winter session of the Assembly was adjourned sine die 25 days ahead of schedule, the state government has to take the ordinance route to make it effective.

“Every rule made by the state government and every regulation made by the state commission shall be laid, as soon as may be after it is made, before the state legislature,” said section 182 of the Electricity Act.
The regulations framed must be in consonance with the objective of the Electricity Act 2003, which is to enhance the investment of private stakeholders in the electricity regulatory sector so as to create a sustainable and effective system of tariff determination that is cost efficient so that such benefits percolate to the end consumers, the Supreme Court said.

“While framing these guidelines on determination of tariff, the appropriate commission shall be guided by the principles prescribed in section 61, which also includes the National Electricity Policy (NEP) and National Tariff Policy (NTP),” the apex court order said. The discoms have already filed their ARR and tariff applications with OERC before November 30, 2022.