JSERC Issues New Generation Tariff Regulations 2025 To Govern Power Tariffs In Jharkhand From FY 2026–31

The Jharkhand State Electricity Regulatory Commission (JSERC) has officially notified the “Terms and Conditions for Determination of Generation Tariff) Regulations, 2025, which will govern the process of power tariff determination in Jharkhand from April 1, 2026, to March 31, 2031. Published in the Jharkhand Gazette on October 15, 2025, these regulations replace the earlier tariff frameworks of 2004, 2007, 2010, 2015, and 2020. The new framework aims to promote efficiency, fair competition, and optimal use of resources among generating companies operating in the state.

The regulations define the scope, applicability, and methodology for determining tariffs of generating stations under Section 62 of the Electricity Act, 2003, except for those covered under competitive bidding or renewable energy projects. The Multi-Year Tariff (MYT) framework, a major feature, will apply for five years starting from FY 2026–27. It requires generating companies to file a Business Plan and MYT Petition by November 30, 2025, covering revenue requirements and tariff projections for the entire control period.

The JSERC has clarified that the norms of operation prescribed under these regulations will be ceiling norms. Generating companies and beneficiaries may agree to improved operational performance, and such norms will be considered in tariff determination. The useful life of thermal power stations is set at 25 years and hydro stations at 40 years, with possible extensions after prudence checks.

The tariff determination will be based on capital cost, including approved expenditures, interest during construction, financing charges, and other prudent costs. The capital cost for existing generating stations will be as admitted by the Commission as of March 31, 2026, while new projects commencing operations after April 1, 2026, must seek tariff approval within 60 days of commercial operation. The regulations also lay out provisions for additional capitalization, allowing inclusion of expenditure arising from a change in law, force majeure events, or deferred works, subject to prudence review.

An Annual Performance Review (APR) will be conducted every year to compare approved versus actual expenses, capital expenditure, revenue, and performance targets. The review will also include mechanisms for sharing gains or losses arising from controllable factors. Based on these reviews, the Commission may revise the Aggregate Revenue Requirement (ARR) and tariffs for subsequent years.

The regulations empower the JSERC to conduct periodic reviews, issue orders, and make amendments as required. They also provide detailed timelines for filing, information submission, and petition disposal—each petition must be processed within 120 days of acceptance. In case of delayed payments by beneficiaries, generating companies can levy a late payment surcharge at the bank rate plus up to 500 basis points, while a 1.5% rebate will be available for payments made within five days.

The Commission retains powers to relax, interpret, or modify provisions in the public interest and can address disputes or difficulties arising from implementation. It may also adopt alternative procedures when special circumstances demand.

Overall, the 2025 tariff regulations represent a comprehensive update to Jharkhand’s power sector governance framework, aligning it with modern operational, financial, and regulatory practices. The objective is to ensure transparent cost recovery, encourage efficiency, and maintain fairness between generators and consumers while fostering reliable electricity generation in the state.