The Bihar Electricity Regulatory Commission (BERC) has directed South Bihar Power Distribution Company Ltd. (SBPDCL), North Bihar Power Distribution Company Ltd. (NBPDCL), and East Central Railway (ECR) to submit written clarifications on key technical and financial issues by September 9, 2026. The direction was issued on September 1 during proceedings in Case No. 02/2023.
The case relates to a dispute over Long-Term Open Access and the issuance of No-Objection Certificates (NOCs) by Bihar State Power Transmission Company Ltd. (BSPTCL). The state distribution companies have also sought permission to recover Open Access-related charges from ECR, including Cross-Subsidy Surcharge (CSS), arrears and applicable interest.
During the hearing, the Commission examined responses connected with an Interlocutory Application filed by SBPDCL and NBPDCL on August 31, 2026. BERC has now asked the parties to provide detailed written responses on several issues before the next hearing.
One key issue concerns captive status. The petitioners have been asked to clarify whether they have obtained the mandatory year-wise captive status certificates from the designated authority as required under the Electricity Rules.
The Commission has also sought clarification on the interest applicable to outstanding amounts. ECR has questioned the use of a 1.25% Late Payment Surcharge (LPS) under the Open Access Regulations instead of the 1.5% Delayed Payment Surcharge (DPS) provided under annual tariff orders.
Another issue involves the Deviation Settlement Mechanism (DSM). The DISCOMs have been directed to respond to ECR’s contention that Cross-Subsidy Surcharge should be calculated only after separately accounting for energy settled through DSM.
The Commission also considered an oral request from the petitioners seeking interim payment of 50% of the billed amount. ECR has been asked to submit a written explanation on why an appropriate portion of the disputed amount should not be paid provisionally until the matter is finally settled.
BERC further directed the parties to follow the requirements set out in paragraph 72 of the Supreme Court’s order in Civil Appeal No. 4652-4659 of 2024. Under the direction, the distribution companies must provide ECR with detailed and disaggregated calculations of outstanding CSS, specifying the supply area and relevant period. ECR must then be provided four to eight weeks to examine and respond to the calculations.
The Commission has also encouraged senior officials from the concerned parties to hold direct discussions and seek an amicable settlement. Minutes of these meetings are to be submitted to BERC for consideration.
The next hearing in the matter is scheduled for September 16, 2026, at 11:30 AM.
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