OPGC Power Tariff Hearing Postponed to May 6

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The Odisha Electricity Regulatory Commission (OERC) has postponed the public hearing on power tariffs for Odisha Power Generation Corporation (OPGC) to May 6. The hearing was meant to decide the power rate for OPGC’s second phase power generation units.

OPGC had earlier submitted two proposals to OERC, seeking approval for power tariffs for the 2025–26 financial year. While the commission had already approved the tariff for the first phase—420 MW from Units 1 and 2—and kept the price unchanged, the latest hearing was scheduled to decide the rate for the larger second phase—1320 MW from Units 3 and 4.

The hearing was held with a full bench of OERC, including its new chairman and former Chief Secretary Pradeep Kumar Jena, and members Gajendra Mahapatra and Sushanta Ray Mahapatra.

At the start of the hearing, GRIDCO, the bulk power buyer for Odisha, asked for more time to review and respond to OPGC’s proposal. This led to some dissatisfaction from Chairman Jena, who then gave GRIDCO seven days to submit its feedback.

Power sector expert Anand Mahapatra said that coal cost is a major factor in deciding OPGC’s power tariff. He pointed out that coal cost makes up about 50% of the power tariff. However, the coal price has not yet been finalized by the commission.

OPGC gets its coal from the Manoharpur coal block, operated by Odisha Coal and Power Limited (OCPL), a company jointly managed by OPGC. In May 2024, OERC issued a 29-page draft document to guide coal pricing. Although OCPL submitted several applications asking for coal price approval under the OERC Act, no hearing has been held yet.

In today’s schedule, OCPL’s application for coal pricing was also listed. Several major stakeholders were registered as objectors in the case, including OPTCL, the Energy Department, GRIDCO, and the four Tata-owned power distribution companies in the state.

Mahapatra raised concerns that OERC is avoiding a transparent public hearing process for setting the coal price. He said this might affect fair power tariff decisions, as coal pricing directly impacts electricity rates.

During the hearing, all these stakeholders presented their arguments. After listening to the discussions, OERC decided to postpone the OPGC tariff hearing to May 6. The commission also instructed that public suggestions on coal pricing be collected through a general notice.

The outcome of these hearings will play a key role in determining power prices in the state for the upcoming financial year.

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