Major Relief for DVC: JSERC Recognises Part of Accumulated Regulatory Assets
02.04.2026
SKV Law Offices is representing Damodar Valley Corporation (“DVC”) in the ongoing suo motu proceedings before the Hon’ble Appellate Tribunal for Electricity (“APTEL”) in OP No. 1 of 2025, concerning sector-wide issues relating to the amortization and recovery of regulatory assets across State Commissions.
These proceedings arise pursuant to the directions issued by the Hon’ble Supreme Court in its judgment dated 06.08.2025, whereby all State Commissions were directed to formulate a roadmap for recovery of the accumulated revenue gap/regulatory assets across the country, with the Hon’ble APTEL directed to oversee and ensure compliance with the same by way of OP No. 1 of 2025.
In its recent Tariff Order dated 30.03.2026 for FY 2026–27, the Jharkhand State Electricity Regulatory Commission (“JSERC”) has, for the first time, recognised a substantial portion of DVC’s accumulated regulatory assets. As part of this exercise, JSERC has allowed a pass-through of ₹1,930.51 Crores, resulting in an overall tariff impact of approximately 40%.
JSERC has also introduced a Regulatory Asset Adjustment Surcharge (“RAAS”) of ₹0.35/kWh as a mechanism to facilitate recovery of such recognised Regulatory Assets through tariff.
While the entire stock of Regulatory Assets has yet to be recognised and allowed for recovery, the present Order marks a significant shift in approach. JSERC has acknowledged a part of the long-pending regulatory assets and initiated a structured pathway for their recovery, in alignment with the directions of the Hon’ble Supreme Court and the ongoing proceedings before APTEL.
The present development marks a significant milestone in DVC’s long-standing efforts to secure recovery of its legitimate dues, including cost-reflective tariffs and timely recovery of prudently incurred expenses.
The matter is being led by Mr. Shri Venkatesh, Founding Partner, along with Mr. Nihal Bhardwaj, Counsel and Ms. Surbhi Kapoor, Senior Associate from SKV Law Offices.
