Ranchi: Jharkhand Bijli Vitran Nigam Limited (JBVNL) has initiated a review petition against the tariff order issued by the Jharkhand State Electricity Regulatory Commission (JSERC), concerning electricity rates. The order, which was passed on April 30, 2024, affects the true-up for the fiscal year 2023-24, the Annual Performance Review (APR) for 2024-25, and the determination of Aggregate Revenue Requirement (ARR) and tariffs for 2025-26. The new tariffs came into effect on May 1, 2025.
The JSERC announced the tariff structure for fiscal year 2025-26 on April 30, which included an increase of 20 paise per unit for urban consumers and 40 paise per unit for rural consumers in Jharkhand. This resulted in an overall electricity tariff increase of 6.34%, effective from May 1, 2025. While JBVNL had proposed a significant increase of 40.02%, the commission approved a smaller increment.
JBVNL is disputing aspects of the commission’s decision, particularly the approved rate. The petition requests a review of several points, aiming to improve JBVNL’s financial position and provide consumers with fair pricing.
The core of the dispute revolves around several key areas, including power purchase costs, non-tariff income, transmission losses, and interest rate calculations.
JBVNL claims that the commission mistakenly deducted 7.76 crore rupees by double-counting a power purchase discount of 3.88 crore rupees. The corporation seeks to rectify this, ensuring the correct power purchase cost is recognized. Moreover, the utility disagrees with the commission’s calculation of non-tariff income, and they reference a 2011 decision by the Appellate Tribunal in support of their figures.
Discrepancies also exist regarding transmission losses, which JBVNL asserts are higher than the commission’s figures. The corporation also objects to the interest rate set by the commission and the rejection of bank and financial charges. The petition also includes proposals such as the daily deduction of fixed charges and the introduction of a time-of-day tariff.