The Jharkhand State Electricity Regulatory Commission (JERC) on January 28, 2026, issued the Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2025.
These Regulations shall come into force upon publication in the Jharkhand Government Gazette and shall remain in force for a period from April 01, 2026 to March 31, 2031. In the event of an earlier review or extension by the Commission, these Regulations shall remain in force until March 31, 2031 or for such extended period.
These regulations shall govern the determination of consolidated revenue requirement and tariff for intra-State transmission of electricity within the State of Jharkhand and shall be applicable to all transmission licensees in the State.
These regulations will apply where cost-based/aggregated revenue requirement (ARR) based tariff is determined by the Commission:
Provision: These regulations shall not apply in cases where the tariff has been determined through a competitive bidding process in accordance with the guidelines issued by the Central Government and the parameters 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. 122]
