Jharkhand Bijli Vitran Nigam Limited (JBVNL) has filed a review petition against the tariff order passed by the Jharkhand State Electricity Regulatory Commission (JSERC) on April 30, 2024. The petition pertains to the true-up for fiscal year 2023-24, the annual performance review (APR) for 2024-25, and the ARR and tariff determination for 2025-26. New tariff rates in the state are effective from May 1, 2025. The commission announced tariffs for fiscal year 2025-26 on April 30, increasing electricity rates by 20 paise per unit for urban consumers and 40 paise per unit for rural consumers in Jharkhand. Overall, the electricity tariff has been increased by 6.34%, effective May 1, 2025. JBVNL had proposed a 40.02% tariff increase, but the commission approved only a 6.34% increase. JBVNL objects to this. JBVNL sought a rate of eight rupees per unit, while the commission approved a rate of 6.85 rupees per unit. JBVNL has requested the commission to reconsider various points and issue a revised order. The petition states that these revisions will not only improve the corporation’s financial situation but also provide consumers with transparent and fair rates.
JBVNL claims that the commission erroneously deducted 7.76 crore rupees by double-counting the power purchase discount of 3.88 crore rupees. This resulted in an incorrect deduction in the cost of electricity purchase. The corporation has demanded that the power purchase cost be accepted as 7709.20 crore rupees instead of 7701.44 crore rupees.
JBVNL has also objected to non-tariff income. The corporation asserts that the actual non-tariff income is 126.43 crore rupees after adjusting for financial costs from the delayed payment surcharge (DPS), whereas the commission has shown it as 551.54 crore rupees. The company cited a 2011 decision by the Appellate Tribunal for this difference.
Regarding transmission losses, JBVNL has stated that the losses are 6.41% for JUSNL and 5.33% for DVC. The commission has accepted 2.23% and 2.96% respectively. The corporation claims that these losses are beyond its control and it is facing dual losses.
There is also a difference of opinion between the commission and JBVNL in determining the interest rate. The corporation has demanded the actual interest rate of 12.52%, while the commission has accepted the standard rate of 10.5%. Similarly, the corporation has disagreed with the commission’s rejection of bank and financial charges (2.38 crore rupees).
Several practical proposals are also included in the petition, such as daily deduction of fixed charges, a new form of TOD (Time of Day) tariff, approval of the NDS HT sub-category, clarity for electric vehicle consumers, reclassification of the street light category, and permission for LT connection options up to 150 kilowatts.
