BERC Sets ₹4.16/kWh as Average Power Purchase Cost for Bihar DISCOMs

The tariffs will become effective from April 1, 2018


The Bihar Electricity Regulatory Commission (BERC) has fixed ₹4.16 (~$0.064)/kWh as the average power purchase cost (APPC) for the state’s distribution companies (DISCOMs) during financial year 2018-19.

The APPC does not include intra-state transmission costs. If the intra-state transmission costs were added, the APPC would rise to ₹4.45 (~$0.068)/kWh.

The APPC will apply to the two DISCOMs of the state, North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL).

The average cost of supply for both of the DISCOMS during FY 2018-19 was found to be ₹7.35 (~$0.11)/kWh. BERC fixed ₹7.38 (~$0.112)/kWh as the average billing rate for DISCOMs during FY 2018-19.

BERC believes that state DISCOMs need to focus on service quality and consumer satisfaction. Reducing Aggregate Technical and Commercial (AT&C) losses is vital, but will require extra effort and BERC has proposed closely monitoring how DISCOMs approach this challenge during FY 2018-19.

The tariffs will become effective on April 1, 2018 and will remain in force until March 31, 2019, or until the next tariff order is issued by BERC.

In the tariff order, BERC also approved a combined projected demand of 29,399.30 million units (MUs) of electricity for the two DISCOMs.

Of the projected demand of 29,399.30 MUs, BERC has proposed that 19,546.77 MUs (66.49 percent) will be met by central generating stations. Another 9,184.92 MUs (31.24 percent) will be taken from state generating stations and other long- and medium-term Independent Power Producers (IPPs), and only 667.61 MUs (2.27 percent) will be drawn from renewable energy sources.

Recently, the Central Electricity Regulatory Commission (CERC) issued a set of levelized generic tariffs for the purchase of electricity from a host of renewable power generation sources during financial year (FY) 2018-19.

BERC has also revised its Renewable Purchase Obligation (RPO) trajectory. Under the revised trajectory, DISCOMS and other obligated entities will have to fulfil an RPO target of 9.25 percent for FY 2018-19. This will include a solar RPO of 3.25 percent and a non-solar RPO 6 percent.

As reported previously by Mercom, BERC recently issued draft regulations pertaining to intra-state open access for 2018.