The Odisha Electricity Regulatory Commission (OERC) has retained the previous year’s retail power supply tariff structure for the financial year (FY) 2026-27, covering energy charges, demand charges, rebates, and surcharges across consumer categories.

It has, however, made certain revisions to open access charges. It has also introduced time-of-day tariffs for consumers with smart meters.

The tariff order applies to all four DISCOMs: Tata Power Centra Odisha Distribution (TPCODL), Tata Power Northern Odisha Distribution (TPNODL), Tata Power Western Odisha Distribution (TPWODL), and Tata Power Southern Odisha Distribution (TPSODL).

Tariff Structure

For low-tension (LT) consumers, energy charges vary across consumption slabs, with domestic tariffs ranging from ₹2.90 (~$0.0312) to ₹6.10 (~$0.0656)/kWh, unchanged from last year, while general-purpose consumers pay up to ₹7.60 (~$0.0817)/kWh depending on usage. Industrial LT consumers are charged around ₹6.20 (~$0.0667)/kWh, plus fixed and customer service charges.

For high-tension (HT) consumers, tariffs are largely based on kVAh consumption, with energy charges linked to load factor, ranging from ₹4.75(~$0.0506) (for load factor > 60%) to ₹5.85 (~$0.0623)/kVAh (for load factor = < 60%), and demand charges typically between ₹20 (~$0.2152)/kVA to ₹250 (~$2.69)/kVA per month, depending on category. These remain the same as last year.

For extra-high-tension (EHT) consumers, energy charges are set at around ₹4.70 (~$0.0500)/kVAh (for load factor > 60%)- ₹5.80 (~$0.0617)/kVAh (for load factor < 60%), with demand charges at ₹250 (~$2.69)/kVA per month for most categories. These charges also remain unchanged from FY 2026.

Industrial consumers drawing power at the EHT level will be eligible for a rebate of ₹0.30 (~$0.0032)/kVAh on consumption beyond 80% load factor. LT industrial consumers will avail a rebate of ₹0.10 (~$0.001)/kVAh for all units consumed if their monthly operating load factor is more than 30% and the bill is paid by the due date.

Open Access Charges

While the power tariffs have remained unchanged, the Commission has increased the wheeling charges for all four DISCOMs. Transmission charges have gone down, while the cross-subsidy surcharge has gone down for HT consumers and increased for EHT consumers. No additional surcharge beyond the cross-subsidy surcharge is payable to the distribution licensee.

Surcharges and Additional Charges

The Commission has reintroduced the delayed payment surcharge at 1% per month for certain consumer categories, applicable on unpaid dues beyond the due date.

Overdrawal provisions allow industries to draw up to specified limits without penalty under certain conditions, while additional consumption beyond thresholds is charged at ₹5 (~$0.054)/kVAh.

Any industry having a captive generating project with contract demand up to 20 MW, willing to avail power from DISCOMs up to double the contract demand, will be allowed to draw power without payment of overdrawal penalty. The applicable charges for incremental energy consumption beyond the contract demand will be ₹5 (~$0.054)/kVAh.

Industries having a captive generating project with contract demand above 20 MW willing to avail power from DISCOMs and operating at a minimum monthly load factor of 60% will be allowed to draw power at the rate of ₹5 (~$0.054)/kVAh during peak hours and ₹4.30 (~$0.046)/kVAh during hours other than peak hours, for all incremental energy drawal above 60% load factor.

Time-of-Day Tariff

A major reform is the introduction of Time-of-Day (ToD) tariffs, effective July 1, 2026, for consumers with smart meters and contract demand above 10 kW.

• Solar hours (8 AM–4 PM): 10% lower tariff
• Peak hours (6 PM–12 AM): 10% higher tariff

Drawal by industries up to 120% of contract demand will be allowed during normal hours without levy of any penalty. Industries that exceed their contract demand during peak hours will not be eligible for this benefit.

Rebates and Incentives

The order provides multiple rebates, including:

• Prompt payment rebates (around ₹0.10 (~$0.001)/unit)
• Load factor-based rebates for industries (up to 20%)
• Digital payment rebate (4%) and prepaid rebate (4%)
• Railway traction consumers receive an additional ₹0.25 (~$0.0026)/kWh rebate
• EV charging stations are billed at a flat ₹5 (~$0.054)/kWh tariff under the general-purpose category

Metering and Fixed charges

The Commission has specified meter rent ranging from ₹40 (~$0.43)/month for single-phase meters to ₹2,000 (~$21.52)/month for HT meters, along with reconnection charges up to ₹10,000 (~$107.61) for EHT consumers.

In January this year, OERC proposed a structured framework for levying grid support charges on captive generating projects operating in parallel with the state grid.

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