The Jharkhand State Electricity Regulatory Commission (JSERC) has issued the Draft Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2025, aimed at setting out the framework for determining multi-year tariffs for transmission licensees in the state. The regulations, to be in effect from April 1, 2026 to March 31, 2031, will apply to all intra-state transmission licensees where tariffs are determined on a cost or Aggregate Revenue Requirement (ARR) basis, excluding cases discovered through tariff-based competitive bidding under Section 63 of the Electricity Act, 2003.
The draft regulations supersede earlier versions from 2020, 2015, 2010, and 2007, and outline detailed provisions for tariff determination to ensure competition, efficiency, optimal resource use, and reliable transmission infrastructure. They define key terms, prescribe the scope of application, and detail the Multi-Year Tariff (MYT) framework, which will require transmission licensees to submit business plans and ARR filings for the control period based on audited accounts, base year estimates, and projections.
The MYT framework emphasizes long-term business planning, capital investment aligned with load growth, quality improvement, and operational efficiency. It sets out controllable parameters, such as system availability, transmission losses, and capital expenditure, and uncontrollable parameters, like taxes, duties, and force majeure events. Variations from targets will attract incentives or penalties. Gains from refinancing loans or savings in operation and maintenance costs will be shared equally between licensees and beneficiaries.
For ARR calculation, the regulations list components such as O&M expenses, return on equity, interest on working capital, interest on loans, depreciation, income tax, and adjustments for non-tariff and other business income. Capital costs will be subject to prudence checks, with rules for additional capitalization, renovation, modernization, and de-capitalization. A normative debt-equity ratio of 70:30 will apply to new schemes, with a 14% post-tax return on equity.
Operational norms include a Normative Annual Transmission System Availability Factor of 98% for AC systems and 95% for HVDC links to recover full annual fixed charges. Incentives will apply for higher availability, and auxiliary energy consumption costs will be borne by the licensee. Transmission charges will be recovered monthly based on availability, with provisions for rebates for early payment and surcharges for delays.
The draft also outlines quality of supply monitoring, allocation of annual transmission charges, treatment of late payments, and rules for deviation from norms under specific conditions. It provides mechanisms for true-up, annual performance review, and adjustments for uncontrollable events or major variations.
Once finalized, these regulations are expected to bring greater transparency, predictability, and fairness in tariff determination for Jharkhandโs transmission sector, aligning investments and performance with the stateโs growing power demand and policy objectives.
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