BERC Issues New Tariff Order for Bihar’s Distribution Companies

North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) were established on November 1, 2012, as part of the unbundling process of the Bihar State Electricity Board. Since 2013-14, the Bihar Electricity Regulatory Commission (BERC) has been issuing Annual Tariff Orders for these two distribution companies.

In November 2023, NBPDCL and SBPDCL filed tariff petitions with the Commission. After conducting a prudence check and following the necessary procedures, the Commission issued a common tariff order for both companies for the fiscal year 2024-25.

Upon admission of the petitions in December 2023, BERC, in accordance with the Multi-Year Distribution Tariff Regulations of 2021, facilitated wider consultation by publishing abridged versions of the petitions in newspapers and on websites. Public hearings were held in various locations across Bihar to gather feedback from stakeholders and the general public. Both written and oral comments were received and addressed by the distribution companies.

After reviewing the proposals and feedback, conducting a prudence check, and considering revenue projections and past performance, BERC issued a common tariff order for NBPDCL and SBPDCL on March 1, 2024, in compliance with relevant provisions of the Electricity Act, 2003, and BERC Regulations.

According to the petitions, Bihar had approximately 1.90 crore consumers as of March 31, 2023, with projected increases in subsequent years. The distribution companies proposed to sell more energy in the coming years, with corresponding adjustments in revenue requirements.

The Commission approved a net Aggregate Revenue Requirement (ARR) for NBPDCL and SBPDCL, considering revenue from power sales and past performance. The approved ARR for both companies for FY 2024-25 is ₹32,741.14 crores, with a combined surplus of ₹1,614.12 crore.

The Commission also set distribution loss trajectories, renewable power purchase obligations, and other regulatory parameters for the fiscal year. Despite the companies’ proposal for a tariff increase, the Commission decided to reduce tariffs for all consumer categories due to the projected revenue surplus.

Additionally, the Commission made various adjustments to tariff structures and billing practices, including creating new consumer categories, modifying Time of Day (ToD) structures, and accepting proposals for rationalizing billing cycles. The new tariff order will come into effect on April 1, 2024, and will remain in force until March 31, 2025, or until the next tariff order is issued by the Commission.

Please view the document below for more details.