Odisha Regulator Retains Existing Power Tariffs for FY 2026

The Commission introduced new reconnection charges and application fees

April 14, 2025

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The Odisha Electricity Regulatory Commission (OERC) has determined the aggregate revenue requirement (ARR), wheeling tariff, and retail supply tariff (RST) for the financial year (FY) 2025-26, retaining the existing tariff structure across all consumer categories.

The order applies to the four private distribution companies in Odisha- TP Central Odisha Distribution (TPCODL), TP Northern Odisha Distribution (TPNODL), TP Western Odisha Distribution (TPWODL), and TP Southern Odisha Distribution (TPSODL).

The Commission stated that the FY 2024–25 tariffs would continue unchanged because of inflationary pressures and the need to protect consumers from additional financial burden.

Alongside maintaining tariff stability, the Commission introduced new reconnection charges and application processing fees.

Application Processing Fees

The application processing fees have been standardized to streamline service-related requests. For low tension (LT) consumers, an application fee of ₹50 (~$0.60) will be applicable for services such as change of category, change of contract demand, or any correction in the consumer’s name, address, or ownership details (excluding changes to email ID or mobile number).

For high-tension (HT) and extra-high-tension (EHT) consumers, the same set of requests will attract a higher application fee of ₹1000 (~$12).

Reconnection Charges

For domestic LT single-phase consumers, the reconnection charge has been fixed at ₹300 (~$3.60), while for the other LT single-phase consumers, it will be ₹800 (~$9.65). LT three-phase consumers must pay ₹1200 (~$14.45).

For HT consumers, the reconnection charge is ₹6000 (~$72.30), and for EHT consumers, it is ₹10,000 (~$120.50).

These reconnection charges will not apply to consumers equipped with smart meters unless the disconnection occurs due to the meter’s tampering.

The order will be effective from April 1, 2025, to March 31, 2026.

Fixed and Monthly Minimum Fixed Charges (MMFC)

The MMFC for LT consumers have been retained. Domestic consumers will pay ₹20 (~$0.23)/kW for the first kW and each additional kW, while general-purpose LT consumers will pay ₹30 (~$0.35)/kW.

LT industrial (small) consumers will pay ₹80 (~$0.93) for the first kW and ₹35 (~$0.41) for each additional kW, while medium industrial consumers will pay ₹100 (~$1.16) for the first kW and ₹80 (~$0.93) for each additional kW.

Demand and Customer Service Charges for HT and EHT Consumers

For HT and EHT consumers, the demand charge remains ₹250 (~$2.90)/kVA. Additionally, these consumers must pay a customer service charge of ₹700 (~$8.12)/month. These charges help recover the fixed costs incurred by the DISCOMs in maintaining infrastructure and system reliability.

LT Category Energy Charges

LT consumers will be billed at a flat rate of ₹6.20 (~$0.072)/kWh for most categories, including public utilities and industrial services.

For HT and EHT consumers, the energy charges follow a slab tariff structure based on the load factor. Consumers with load factors up to 60% are charged ₹5.85 (~$0.068)/kVAh for HT and ₹5.80 (~$0.067)/kVAh for EHT. Those with load factors above 60% are charged ₹4.75 (~$0.055)/kVAh for HT and ₹4.70 (~$0.054)/kVAh for EHT.

Wheeling Charges and Cross-Subsidy Surcharge (CSS)

Wheeling charges differ across the four DISCOMs. TPSODL has the highest charge at ₹1.74 (~$0.020)/kWh, followed by TPNODL at ₹1.56 (~$0.018)/kWh, TPWODL at ₹1.04 (~$0.012)/kWh, and TPCODL at ₹1.02 (~$0.012)/kWh.

The CSS levied on open access consumers also varies. For HT consumers, TPCODL charges 1.06 (~$0.020)/kWh, TPNODL ₹0.03 (~$0.00035)/kWh, TPWODL ₹0.28 (~$0.0033)/kWh, and TPSODL ₹1.71 (~$0.020)/kWh. For EHT consumers, the surcharge ranges from ₹1.61 (~$0.019)/kWh for the TPWODL to ₹3.56 (~$0.041)/kWh for TPSODL.

Electric Vehicle Charges

Electric Vehicle charging stations will be billed at a uniform rate of ₹5 (~$0.058)/kWh. This rate applies to public charging stations as well as dedicated EV charging units in group housing societies, provided these are equipped with *separate metering connections.

No demand charges will be levied on EV charging infrastructure, ensuring affordability and ease of access for both private operators and residential complexes looking to set up EV charging points

Retail Supply Tariff and Rebates

The RST structure remains unchanged for FY 2025-26. LT consumers are billed on a per kWh basis, while HT and EHT consumers are billed on a kVAh basis to account for the power factor.

The Commission confirmed that no additional surcharge would be imposed on open access users beyond the CSS. It has also approved rebates, including a 20% reduction for HT consumers maintaining a load factor above 85% and a ₹2 (~$0.023)/kWh rebate for mega lift irrigation projects.

Renewable Energy Incentives

The Commission reaffirmed incentives under the Odisha Renewable Energy Policy 2022 to promote renewable energy. Consumers using power from in-state renewable energy projects commissioned during the policy period will receive a 50% CSS exemption, a 25% exemption on wheeling charges, and a ₹0.20 (~$0.0023)/kWh exemption on transmission charges by OPTCL.

These benefits are valid for 15 years and will be extended by five years for projects commissioned before March 31, 2026.

In August 2024, OERC proposed new regulations to promote energy procurement from renewable sources within the state until the financial year 2029-30.

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