Jharkhand regulator order on DVC

The Jharkhand State Electricity Regularity Commission has directed Damodar Valley Corporation (DVC) to fix tariffs for power distribution in Jharkhand as per the provisions of the Electricity Act, 2003.

Citing the section of the Electricity Act, 2003 the commission maintained that distributing licensees are not entitled to fix the tariff rates and it was on JSERC to fix the tariff for DVC's power.

JSERC also asked DVC and Jharkhand State Electricity Board to take permission from the Jharkhand government for sale of power by DVC under the section 18(3) of the DVC Act, 1948.

After Jharkhand was formed, the state government has been insisting on fresh power purchase agreement with DVC as the existing PPA was based on the basis of an agreement between DVC, West Bengal and erstwhile Bihar in 1950.