BERC Flags Delays And Cost Concerns For 10 MW Solar Power Procurement Petition In Bihar

The Bihar Electricity Regulatory Commission (BERC) has raised concerns over procedural delays, additional cost components, and contractual issues in a petition related to the procurement of 10 MW of ground-mounted solar power in the state.

The joint petition was filed by Bihar State Power Generation Company Limited (BSPGCL) and Bihar State Power (Holding) Company Limited (BSPHCL), seeking approval for tariff adoption and the draft Power Purchase Agreement (PPA) for long-term solar power procurement. The petition was submitted under Sections 63 and 86(1)(b) of the Electricity Act, 2003, with North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) listed as respondents.

During the hearing, the BERC bench comprising Chairman Amir Subhani and Member P.S. Yadav examined the Request for Proposal (RfP) and draft PPA documents and identified multiple shortcomings that require clarification from the state utilities.

One of the major concerns raised by the Commission was the inclusion of administrative service charges and regulatory fees payable by successful bidders to BSPGCL. BERC observed that the tender documents did not clearly specify the legal basis or regulatory provisions under which such charges could be imposed. The Commission noted that these additional costs could increase the final tariff burden for consumers.

The Commission also questioned the significant delay in filing the petition. As per Ministry of Power guidelines, petitions for tariff adoption are required to be submitted within 15 days of tariff discovery. However, despite the e-reverse auction being conducted on September 26, 2025, and the Letter of Intent issued on October 6, 2025, the petition was filed only on July 21, 2026. BERC pointed out that no explanation was provided for the delay, nor was any request made for condonation.

BERC further highlighted that BSPGCL had introduced certain deviations from the standard Ministry of Power guidelines in the tender documents without providing reasons or evidence of prior approval from the appropriate authority.

The Commission also directed corrections in the draft PPA, noting that it referred to outdated and repealed regulations, including older open access rules from 2005 and 2008. The tariff discovered through the bidding process, at ₹3.46 per kWh, was also questioned due to the absence of supporting justification or analysis demonstrating that it reflects prevailing market conditions.

Additionally, BERC raised concerns regarding the Renewable Purchase Obligation (RPO) deficit calculations, which were based on an outdated communication issued in August 2024. The Commission indicated that updated calculations would be required for proper assessment.

During the proceedings, BSPGCL representatives requested additional time to respond to the observations raised by BERC. The Commission granted a two-week extension for submitting a detailed reply and scheduled the next hearing on the admission of the petition for August 25, 2026, at 11:30 AM. The outcome of the proceedings will determine the further progress of the proposed 10 MW solar power procurement initiative in Bihar.