Power Tariff Unchanged for FY26-27, Bringing Relief to Consumers
OERC maintains electricity rates despite rising costs, introduces incentives for digital payments.
BHUBANESWAR: In a significant relief to consumers, the Odisha Electricity Regulatory Commission (OERC) has decided to keep the retail electricity tariff unchanged for the 2026–27 financial year, continuing a five-year trend of stable power rates in the state.
The decision comes at a time when power procurement costs are rising across the country. Despite an increase in the average cost of supply and higher power purchase expenses, the regulator opted not to pass on the burden to consumers.
OERC attributed this stability to effective cost management and strategic sourcing of electricity. Savings from reduced charges of certain power projects, lower tariffs from hydroelectric sources, and access to relatively cheaper power have helped offset rising expenses.
The regulator also noted improvements in transmission efficiency, with reduced charges contributing to overall cost optimisation. Additionally, a marginal reduction in bulk supply price has further eased financial pressure on the system.
To encourage digital adoption and timely bill payments, the commission has introduced incentives such as rebates for consumers using online payment modes and prepaid systems, along with discounts for opting for e-billing.
While accommodating financial adjustments within the sector, including a revenue gap, the move aims to strike a balance between consumer relief and the sustainability of the power distribution system.