JBVNL proposes up to 60% power tariff hike over five years, public notice issued

The Jharkhand Bijli Vitran Nigam Limited (JBVNL) has proposed a steep increase of up to 60 per cent in electricity tariffs over a five-year period from 2025–26 to 2030–31 and has issued a public notice inviting objections and suggestions from consumers and stakeholders.

According to the proposal submitted before the Jharkhand State Electricity Regulatory Commission (JSERC), the tariff hike has been planned to offset rising costs related to power purchase, interest burden, return on equity and operational expenses. JBVNL has sought annual revisions in tariffs across domestic, commercial, industrial and agricultural categories.

As per the proposed tariff structure, domestic consumers could see a significant rise in both fixed charges and per-unit rates. Similar increases have been proposed for commercial and industrial users, with higher fixed demand charges and energy rates. The public notice states that electricity tariffs may be revised annually based on projected costs and revenue requirements.

JBVNL has estimated that electricity procurement alone will cost over Rs 8,726 crore in 2025–26, citing rising power purchase prices compared to previous years. In addition, operation and maintenance expenses have been projected at around Rs 972 crore for the same financial year.

A major factor behind the proposed hike is the utility’s growing financial burden. JBVNL has projected an interest and return on equity liability of Rs 825.52 crore, including interest payments of Rs 380.28 crore and return on equity of Rs 445.24 crore. Despite accounting for non-tariff income, the utility has projected an annual revenue requirement of over Rs 10,725 crore for 2025–26.

The power distributor has also presented a long-term capital expenditure plan, projecting investment of nearly Rs 3,900 crore between 2026–27 and 2030–31. This includes expenditure on infrastructure upgrades such as the RDSS scheme, smart metering, network strengthening and system modernisation.

JBVNL officials argue that rising distribution costs, interest liabilities and infrastructure investment needs have made tariff revision unavoidable. However, consumer groups have expressed concern over the impact of the proposed hike, particularly on domestic users and small businesses already grappling with high living and operational costs.

The regulatory commission has invited public comments and objections on the proposal, after which hearings will be held before a final decision is taken. The commission is expected to balance the utility’s financial viability with consumer affordability while determining the final tariff order.

If approved in its current form, the proposal could lead to a sharp increase in electricity bills in Jharkhand over the next few years, making the upcoming regulatory hearings closely watched by consumers and industry alike.