Friday, February 8, 2013

Wesco seeks subsidy from Govt with 35 % distribution loss


OERC hearing on power tariff hike--

BHUBANESWAR: The Western Electricity Supply Company of Odisha (WESCO) has estimated a gap of Rs 1063.13 crore in its revenue requirement for the financial year 2013-14 which is to be recovered from retail supply tariff hike or revenue subsidy from the Government with a 35.01 per cent distribution loss.

During the Odisha Electricity Regulatory Commission (OERC)’s hearing on power tariff hike at the National Institute of Technology (NIT) of Rourkela, Wesco said that it has proposed Annual Revenue Requirement (ARR) of Rs 3213.16 crore to meet its obligation to supply power to the consumers of its areas of supply. It has estimated that out of the proposed revenue requirement Rs 2217.99 crore which is 69 per cent of ARR should be utilised for purchasing power from Gridco.

Wesco has also pointed out that in spite of collecting revenue from consumers at the existing tariff it would not been a position to meet its revenue requirement which has been shown as a gap of Rs1063.13 crore. The company again requested the Commission to consider a retail supply tariff hike or expect a subsidy of that order from the Government.

The proposed distribution loss of Wesco would be 35.01 percent compared to estimated 38 per cent loss during the present financial year 2012-13 against the approved loss by the Commission at 19.6 per cent for the current financial year.

As many as 104 complainants have filed their objections against the proposed ARR of Wesco for the FY 2013-14. They have requested the Commission for a thorough scrutiny of the proposal of the company before approving the same. Some local consumers staged demonstration outside the hearing venue protesting power tariff hike.

Notably, the decision of the Commission on Retail Supply Tariff shall be effective from April 1 this year.

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