Jharkhand Bijli Vitran Nigam Limited (JBVNL) has contested the electricity tariff order issued by the Jharkhand State Electricity Regulatory Commission (JSERC) on April 30, 2024, by filing a review petition. The petition addresses the true-up for the financial year 2023-24, the Annual Performance Review (APR) for 2024-25, and the Aggregate Revenue Requirement (ARR) and tariff determination for 2025-26. The new tariff rates are effective from May 1, 2025. The commission’s tariff announcement on April 30, increased rates by 20 paise per unit for urban and 40 paise per unit for rural consumers in Jharkhand. This translates to an overall electricity tariff increase of 6.34%, starting May 1, 2025.
JBVNL had initially proposed a tariff increase of 40.02%, but the commission sanctioned only 6.34%. The utility objects to this, seeking an eight rupees per unit rate, while the commission approved 6.85 rupees. JBVNL’s petition urges the commission to reconsider several points and issue a revised order, believing these revisions will improve its financial health and ensure consumers benefit from transparent and fair rates.
The key areas of concern highlighted by JBVNL include discrepancies in power purchase costs, non-tariff income calculations, transmission loss assessments, and interest rate determination.
Specifically, JBVNL alleges a double-counting of a 3.88 crore rupees power purchase discount, leading to a 7.76 crore rupees deduction error. The utility seeks to have the power purchase cost recognized as 7709.20 crore rupees instead of 7701.44 crore rupees.
Regarding non-tariff income, JBVNL claims the actual figure, after accounting for financial costs related to the Delay Payment Surcharge (DPS), is 126.43 crore rupees, significantly different from the commission’s 551.54 crore rupees estimate. They cite a 2011 Appellate Tribunal ruling in support of their calculation.
JBVNL also disputes the commission’s assessment of transmission losses. They maintain losses of 6.41% for JUSNL and 5.33% for DVC are factual, unlike the commission’s 2.23% and 2.96% figures, respectively. The utility argues these losses are beyond their control.
Additional disagreements pertain to the interest rate, where JBVNL seeks an actual rate of 12.52%, versus the commission’s 10.5% standard rate, and the rejection of bank and financial charges amounting to 2.38 crore rupees.
The petition also includes proposals related to fixed charge deductions, Time of Day (TOD) tariff reform, the approval of the NDS HT sub-category, provisions for electric vehicle consumers, street light category reclassification, and the allowance of LT connection options up to 150 kW.