THEBUSINESSBYTES BUREAU
BHUBANESWAR, JUNE 24, 2026
Tata Power’s management of electricity distribution in Odisha
has come under sharp scrutiny after the Odisha Electricity Regulatory
Commission (OERC) flagged excess revenue realization, failure to achieve smart
metering targets and continuing safety concerns, even as one of its
distribution companies, TPNODL, emerged as the state’s best-performing utility
in terms of loss reduction and operational efficiency.
According to the OERC’s performance review for FY 2025-26,
Tata Power-operated distribution companies – TPCODL, TPNODL, TPWODL and TPSODL –
collectively earned ₹18,351 crore, which was ₹778 crore more than
the revenue envisaged under the approved tariff framework. The regulator noted
that consumers across categories were charged rates higher than the average
tariffs approved by the commission.
For Extra High Tension (EHT) consumers, the approved average
tariff was 645.39 paise per unit, whereas the actual realization stood at
678.40 paise per unit. Medium Voltage (MV) consumers paid 692.65 paise per unit
against the approved tariff of 658.04 paise, while Low Tension (LT) consumers
were charged 520.58 paise per unit compared to the approved tariff of 503.87
paise per unit.
The review also highlighted Tata Power’s inability to fully
implement critical smart metering infrastructure. The company failed to ensure
100 per cent smart metering of power transformers, distribution transformers
and 33 kV and 11 kV feeders. The regulator observed that the delay has affected
efforts to improve transparency, monitoring and consumer awareness regarding power
supply interruptions and service quality.
Safety remained another area of concern. During the year
under review, 181 electricity-related accidents were reported, resulting in the
deaths of 80 people and 54 animals, raising questions over the effectiveness of
safety measures and preventive mechanisms.
Despite these shortcomings, TPNODL delivered an impressive
performance, recording the lowest distribution loss of 10 per cent and the
lowest Aggregate Technical and Commercial (AT&C) loss of 7.65 per cent
among all distribution companies in Odisha. Its achievement stood out as a
benchmark for operational efficiency and revenue realization in the state's
power distribution sector.
The OERC had approved power purchase of 39,982 million units
(MU), electricity sales of 33,389 MU, distribution losses of 16.49 per cent,
and revenue of ₹19,413 crore for FY 2025-26. However, the
actual power purchase was 35,671 MU, while sales stood at 30,163 MU. The
overall distribution loss was reduced to 15.44 per cent, better than the approved target.
Among the four Tata Power-run distribution companies, TPSODL
recorded the highest distribution loss at 19.72 per cent, indicating
significant operational disparities across regions. The combined AT&C loss
of the utilities stood at 14.68 per cent, an improvement over the regulatory
benchmark of 17.33 per cent, though TPCODL and TPSODL continued to post
relatively high losses of 17.70 per cent and 18.77 per cent, respectively.
Power sector observers noted that while TPNODL’s
performance demonstrates the potential for efficient electricity distribution
in Odisha, the broader concerns surrounding excess revenue collection, safety
incidents and delayed technological upgrades have overshadowed Tata Power’s
overall record in the state.
