The Jharkhand State Electricity Regulatory Commission (JSERC) has notified draft regulations for determining electricity distribution tariffs, which will come into force on 1st April 2026 and remain effective until 31st March 2031. The new framework ensure reliable electricity supply, improve operational efficiency, and tighten accountability of distribution companies. All tariff regulations issued between 2004 and 2023 will be repealed once the new rules are implemented.
Framework Introduced Annual Performance Review
The regulations introduce a multi-year tariff (MYT) framework for the 2026–31 control period to undergo annual performance reviews and maintain transparent tariff filings. Distribution and retail supply have been separated under the Aggregate Revenue Requirement (ARR) structure. While distribution costs will include O&M, depreciation, interest, and return on equity, retail supply will cover power purchase costs, transmission charges, and consumer deposit interest. The framework mandates 99% recovery efficiency for Jharkhand Bijli Vitran Nigam Ltd (JBVNL) and 99.5% for private licensees such as Tata Steel, JUSCO, DVC, and SAIL-Bokaro.
Also Read: JBVNL Found 1188 Cases of Electricity Theft, FIRs lodged Under the Electricity Act 2003
PPA Rules Tightened with Mandatory Approvals
The Commission has tightened power procurement rules, making regulatory approval mandatory for power purchase agreements (PPAs) and enforcing compliance with renewable purchase obligations. Discoms will also be required to submit capital investment plans for 2026–31, covering load growth and loss reduction measures. Any financial savings achieved will be shared equally with consumers, while 50% of performance gains must be passed on. Conversely, any losses due to inefficiency will have to be fully absorbed by the utilities.
Also Read: JBVNL Filed Review Petition Against Power Tariff Order for FY 25-26
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