BERC Tariff Order Sets Lower ARR For BGCL, Returns ₹125.67 Crore Surplus To Consumers

The Bihar Electricity Regulatory Commission (BERC) has issued a new tariff order for Bihar Grid Company Limited (BGCL), setting the financial and operational plan for Bihar’s transmission sector up to 2027. The order covers the final true-up for FY 2024-25, a performance review for FY 2025-26, and the approval of transmission charges for FY 2026-27.

One of the key highlights of the order is the identification of a large revenue surplus. For FY 2024-25, BGCL had claimed a revenue requirement of ₹471.72 crore. However, after a detailed prudence check, the Commission approved only ₹412.94 crore. This led to a surplus of ₹104.88 crore. When carrying costs are added, the total surplus comes to ₹125.67 crore. The Commission has decided that this entire surplus will be passed back to the system by adjusting it against the revenue requirement for FY 2026-27.

For FY 2026-27, the Commission has approved a net Annual Revenue Requirement (ARR) of ₹332.10 crore. This is much lower than BGCL’s earlier projection of ₹455.07 crore. These charges will be recovered monthly from long-term and medium-term transmission users, including state distribution companies, based on their contracted capacity.

The order also focuses strongly on performance. BGCL has been directed to maintain a minimum transmission system availability of 98%. If the company fails to meet this target, its monthly recovery will be reduced on a pro-rata basis. This condition ensures that the utility maintains a reliable and efficient power transmission system while protecting consumer interests.

The Commission has also approved key expenses for the year. Around ₹68.92 crore has been allowed for operation and maintenance, which includes employee costs, repairs, and administrative expenses. In addition, the order sets targets for transmission losses and approves capital expenditure for ongoing infrastructure projects, including Phase IV development works.

To maintain transparency, the Commission held a public hearing in Patna in January 2026. During this process, it considered suggestions and objections from stakeholders such as the Bihar Industries Association.

The tariff order will come into effect from April 1, 2026. It provides a clear roadmap for strengthening Bihar’s transmission network while ensuring financial discipline, efficiency, and accountability in the sector.