The Jharkhand State Electricity Regulatory Commission (JSERC) has released a major new regulation governing electricity transmission in the state. The policy, officially titled the JSERC (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2025, was published in the Extraordinary edition of the Jharkhand Gazette on Wednesday, October 15, 2025. The regulation aims to establish clear guidelines for transmission operations, promote efficiency, and encourage optimal investment by Transmission Licensees in Jharkhand.
The JSERC is exercising its authority under the Electricity Act, 2003, to set these rules. The primary objective is to ensure that transmission companies operate efficiently, maintain high-quality infrastructure, and provide a reliable power supply. The framework is designed to benefit both Distribution Licensees and Open Access consumers across the state. By creating a structured approach for tariff determination and asset management, the Commission seeks to foster competition and encourage financial prudence among licensees.
A central feature of the regulation is the introduction of a Multi-Year Tariff (MYT) approach. Under this system, Transmission Licensees are allowed to recover the total cost of operation over multiple years, rather than through annual adjustments. The MYT is directly linked to the performance of the licensee, meaning that companies delivering better service and more efficient operation are rewarded, while underperformance may limit cost recovery. This mechanism is intended to drive accountability and incentivize optimal performance across the transmission network.
To monitor performance accurately, the regulation establishes a detailed system for calculating the ‘availability’ of transmission assets. These assets include standard equipment such as AC transmission lines, Inter-Connecting Transformers (ICTs), and general Transformers, as well as more advanced systems including Static VAR Compensators (SVCs), STATCOMs, Switched Bus Reactors, HVDC poles, and HVDC back-to-back blocks. Each type of equipment is assigned a Weightage Factor to reflect its relative importance to the reliability and stability of the grid.
Availability is calculated using a formula that takes into account the total hours an asset was available (T) and the hours it was unavailable (TNA). This method ensures a precise assessment of the transmission network’s performance. Notably, the calculation of non-availability hours only considers outages that are directly attributable to the Transmission Licensee. Any downtime caused by factors beyond the licensee’s control is excluded from the penalty calculation and is accounted for as “deemed availability.” This provision ensures that licensees are fairly evaluated based on their operational responsibilities without being penalized for external circumstances.
The regulation provides clear guidelines for the treatment of different transmission assets, their importance to the network, and how their performance will be assessed. By linking cost recovery to performance, JSERC aims to encourage Transmission Licensees to maintain and operate their systems efficiently. This approach is expected to enhance the reliability of power supply across Jharkhand and provide a predictable framework for investment planning in the transmission sector. Overall, the JSERC (Transmission Tariff) Regulations, 2025, mark a significant step in modernizing the state’s power transmission framework. The policy emphasizes performance-based accountability, structured financial recovery through MYT, and fair evaluation of licensees, ultimately supporting a more efficient, reliable, and transparent electricity transmission system in Jharkhand.
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