Jharkhand Electricity Issues New Regulations 2024 On Fees, Fines And Compliance

Introduction

The Jharkhand State Electricity Regulatory Commission (JSERC) has issued a new set of regulations for 2024, superseding the 2016 regulations and their amendments.[1] These regulations, officially called the “Jharkhand State Electricity Regulatory Commission (Fees, Fines & Charges) Regulations, 2024”, were enacted using the authority granted to JSERC under the Electricity Act of 2003. The regulations aim to streamline the process of managing fees, fines, and other charges related to electricity generation, transmission, and distribution in Jharkhand.  

Explanation (Key Points)

Definitions and Interpretations: Clear definitions are provided for key terms such as “Act,” “Commission,” “Fees,” “Fines and/or Charges,” “Fund,” “Generating Company,” and “Licensees,” ensuring clarity and consistency in the application of the regulations.  

Fees on Applications and Petitions: The regulations outline the fees payable for various applications and petitions, including those for new licenses, amendments, revocations, and tariff determinations. The fees are payable via bank draft, pay order, or online transfer, and are credited to the JSERC Fund.  

Imposition of Fines and/or Charges: The JSERC is empowered to impose fines and charges on entities found in non-compliance with the provisions of the Electricity Act or the regulations. The quantum of fines and charges is determined based on the nature and extent of the violation, wrongful gain, loss caused to others, and the repetitive nature of the offense.  

Payment of Fines and Charges: The regulations specify that fines and charges must be paid within 30 days of the order, with provisions for recovery as arrears of land revenue in case of non-payment.  

Fees Payable on License: The licensees, including deemed licensees, are required to pay an annual fee, while new entrants also have to pay an initial license fee. The annual fee is payable by April 15th each year, with interest payable on late payments.  

Inclusion in Tariff: The regulations allow licensees to include the fees and charges paid under these regulations as expenses in tariff determination, except for penalties and interest paid due to late payment.

Filing of Appeal: The regulations provide a process for aggrieved parties to file an appeal against the final orders under section 126 of the Act. The appeal, along with the required fee, is to be filed with the Appellate Authority within 30 days of the order.  

Conclusion

The 2024 regulations issued by the JSERC provide a comprehensive framework for managing fees, fines, and compliance in the electricity sector of Jharkhand. By clearly defining the procedures and providing a transparent mechanism for appeals, the regulations aim to promote efficiency and accountability in the industry. The inclusion of provisions for online payment and electronic transfer reflects a move towards digitization and ease of doing business. These aspects collectively contribute to making the Jharkhand electricity sector more robust and investor-friendly.

[1] https://www.jserc.org/pdf/draft_regulations/cobfees2024.pdf