The Jharkhand State Electricity Regulatory Commission (JERC) on October 15, 2025, issued the Draft Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2025.
These Regulations shall come into force for the period from April 01, 2026 to March 31, 2031, after its publication in the Official Gazette of the Government of Jharkhand and unless reviewed earlier or extended by the Commission, shall remain in force upto March 31, 2031.
These Regulations shall extend to the whole of the State of Jharkhand.
These Regulations shall be applicable for determination of Aggregate Revenue Requirement and tariff for the intra-State transmission of electricity and apply to all the Transmission Licensees in the State of Jharkhand.
These Regulations shall be applicable where the cost based/Aggregate Revenue Requirement (ARR) based tariff is determined by the Commission:
Provided that these Regulations shall not be applicable where tariff has been discovered through tariff based competitive bidding in accordance with the guidelines issued by the Central Government and adopted by the Commission under Section 63 of the Act.
The Framework will be applicable from April 1, 2026, to March 31, 2031, governing the filing, approval, and review of Annual Revenue Requirement (ARR) and tariff proposals for Transmission Licensees. The framework requires licensees to submit MYT applications with audited accounts for FY 2020–21 to FY 2024–25, revised estimates for FY 2025–26, and projections for each year of the control period. The Commission will determine tariffs annually within the approved control period, based on the licensee’s business plan, network usage forecasts, and tariff design proposals.
The guiding principles emphasize a forward-looking approach based on a comprehensive Business Plan, which includes capital investment, operational, and human resource plans. Transmission Licensees must submit scheme-wise capital investment details, cost-benefit analyses, and timelines aligned with State and Central Transmission Utilities’ expansion plans. The framework categorizes parameters into controllable (such as system availability, losses, O&M expenses, and return on equity) and uncontrollable (such as taxes, exchange rate fluctuations, and force majeure events). Variations due to uncontrollable factors may be passed through to consumers, while deviations in controllable items will attract incentives or penalties based on performance.
The MYT framework also establishes an incentive and penalty mechanism, including a 50:50 sharing of financial gains from refinancing and operational efficiencies between Transmission Licensees and beneficiaries. Licensees achieving higher system availability than targets will be entitled to incentives, whereas underperformance losses must be fully absorbed by them. The approach ensures predictability, efficiency, and transparency in tariff determination while aligning investment and operational planning with long-term system growth and consumer interest.
[Notification No. 114]
