No Increase in Electricity Rates in Odisha; Smart Meter Rent Waived

25th March 2025: The Odisha Electricity Regulatory Commission (OERC) has confirmed that electricity rates will remain unchanged for the fiscal year 2025-26 for regular consumers. This decision follows the review of petitions regarding a proposed tariff hike. Despite an increase in electricity procurement costs, OERC has opted to prioritize consumer welfare and maintain the existing rates.

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In addition, consumers with smart meters using up to 2 kilowatts of electricity will no longer have to pay rent for the meters. Previously, they were charged ₹60 per month, but now the government will bear the cost, amounting to ₹700-800 crore in financial relief.

Other benefits include a 10% discount for those paying bills digitally and a 4% rebate for online bill payments. Consumers using more than 10 kW of electricity will receive a 20-paise per unit discount during “solar hours” (8 AM to 4 PM), while electricity used during “peak hours” (6 PM to 12 AM) will incur an additional 30-paise per unit charge.

Industrial consumers who exceed their regular electricity usage by 80% or more will be eligible for a 20% discount on their electricity bills.

OERC also highlighted reduced supply-related losses (AT&C), noting that improvements in the grid’s efficiency have allowed for the retention of the current tariff rates. However, consumer groups have raised concerns about why rates haven’t been reduced despite these advancements.

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