OERC Sets FY27 Bulk Power Tariff For GRIDCO, Pushes Renewables And Cost Discipline In Odisha

The Odisha Electricity Regulatory Commission has issued its tariff order for GRIDCO Ltd. for the financial year 2026–27, setting the framework for bulk electricity supply across the state. GRIDCO will continue to act as the central power procurement agency, purchasing electricity from thermal, hydro, and renewable sources and supplying it to the four distribution companies—TPCODL, TPNODL, TPWODL, and TPSODL.

For FY 2026–27, the Commission examined GRIDCO’s Aggregate Revenue Requirement (ARR) to determine the Bulk Supply Price (BSP), which is the rate at which power is sold to the DISCOMs. GRIDCO estimated a total energy requirement of 40,415.95 million units (MU), factoring in a transmission loss of around 3%. The company had proposed a power purchase cost of about ₹14,503.08 crore based on the Merit Order Dispatch principle. However, the Commission carried out a detailed prudence check to ensure that only reasonable and necessary costs are passed on to consumers.

After this review, the Commission approved different BSP rates for each DISCOM, considering their varying consumer mix and operational conditions. From April 1, 2026, the BSP has been fixed at 331.00 paise per kWh for TPCODL, 344.00 paise per kWh for TPNODL, 379.00 paise per kWh for TPWODL, and 190.00 paise per kWh for TPSODL. The variation reflects differences in demand patterns, losses, and supply conditions in their respective service areas.

The order also highlights a strong push toward renewable energy. GRIDCO is expected to procure around 5,208.66 MU of power from renewable sources such as solar, wind, and small hydro projects. However, to meet the Renewable Consumption Obligation targets set by the Ministry of Power, there could be a shortfall of about 1,270 MU. To address this, the Commission has advised GRIDCO to consider options like Renewable Energy Certificates and Virtual Power Purchase Agreements to bridge the gap.

On the financial side, the Commission reviewed GRIDCO’s request to recover past losses and interest costs through tariffs, but did not fully allow it. Instead, it directed that such financial gaps should be managed through revenue earned from surplus power trading. GRIDCO is expected to have a surplus of about 8,784.11 MU, which can be sold in the market to improve its financial position.

To encourage financial discipline among DISCOMs, the order continues the rebate mechanism. A rebate of 1.5% will be offered if payments are made within five working days, helping improve cash flow across the system.

Overall, the Commission has tried to strike a balance between ensuring GRIDCO’s financial stability and protecting consumers from high tariffs. By continuing with the Single Buyer Model, it aims to maintain uniformity in power costs while encouraging the use of lower-cost generation sources to keep electricity affordable in the state.