CSERC Finalizes ₹716.22 Crore ARR And ₹5.37/kWh Tariff; Sets RPO Target For FY 2025-26 In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has passed an order on July 23, 2025, regarding the tariff petition filed by Jindal Steel & Power Limited – Distribution (JSPL-D). The petition included two parts: truing-up for the financial year (FY) 2023-24 and determination of Aggregate Revenue Requirement (ARR) and retail tariff for FY 2025-26. However, the Commission did not carry out the truing-up exercise for FY 2023-24 as the matter is currently sub-judice before the Hon’ble Appellate Tribunal for Electricity (APTEL), and will be addressed after APTEL issues its final order.

For tariff determination, JSPL-D had filed its petition on January 7, 2025, and subsequently published a public notice to invite stakeholder feedback. A Technical Validation Session was held on January 28, 2025, followed by a public hearing on June 19, 2025. The consumer body Raigarh Ispat Udyog Sangh expressed no objections to the petition and supported the proposed tariff structure.

JSPL-D had projected energy sales of 1,457.14 million units (MU) for FY 2025-26. However, after reviewing the past data and applying growth trends using the Compounded Annual Growth Rate method, the Commission approved energy sales of 1,333.00 MU. To meet the energy demand, JSPL-D had proposed power procurement at a discovered rate of ₹5.05 per unit and planned to meet its Renewable Purchase Obligation (RPO) using Renewable Energy Certificates (RECs).

The company also proposed a load factor rebate of 10% on the energy charge for high-voltage consumers who maintain a load factor above 70%. However, the revenue gap from this rebate would not be passed on to other consumers. JSPL-D sought an ARR of ₹806.99 crore, but after scrutiny, the Commission approved ₹716.22 crore. The standalone average cost of supply was thus calculated to be ₹5.37 per kilowatt-hour (kWh).

The tariff order will be effective from August 1, 2025, and will remain valid until March 31, 2026, or until a new order is issued. The Commission instructed JSPL-D to implement the tariff order appropriately and continue to maintain transparency and compliance with regulatory norms.

This order follows the provisions laid out under the CSERC Multi-Year Tariff (MYT) Regulations, 2021. It reflects the ongoing legal and regulatory proceedings involving JSPL-D’s power procurement sources, tariff claims, and segregation of financial accounts from its steel business. The historical background also shows JSPL-D’s earlier challenges in filing tariff petitions without audited segregated accounts, which had led to prolonged litigations and delayed tariff approvals in the past.