Jamshedpur: The Singhbhum Chamber of Commerce and Industry (SCCI) has registered a strong protest against a proposed electricity tariff hike, submitting a scathing objection to the Jharkhand State Electricity Regulatory Commission (JSERC). The chamber warns that the “tariff shock” proposed by Jharkhand Bijli Vitran Nigam Limited (JBVNL) for the 2026–27 fiscal year could cripple the state’s economy.
The proposal, which suggests increases ranging from 50% to 90% across domestic, industrial, and agricultural sectors, has been labelled “anti-consumer” and “impractical” by business leaders.
The Core Objections: Efficiency vs. Burden
SCCI President Manav Kedia argues that the hike lacks economic rationale, especially as global coal prices have stabilized. The Chamber asserts that JBVNL is attempting to pass the bill for its own internal failures onto the public.
Key areas of concern highlighted by the Chamber:
- High Distribution Losses: Consumers should not pay for JBVNL’s “rampant power theft” and “managerial inefficiencies.”
- AT&C Losses: The Chamber demands a prohibition on recovering losses that exceed established regulatory norms.
- Performance Benchmarks: JBVNL has consistently failed to meet Multi-Year Tariff (MYT) targets, which legally should result in cost disallowance, not price hikes.
Impact on “Industrial Hub” Jamshedpur
The proposed hike is expected to hit the MSME (Micro, Small, and Medium Enterprises) sector particularly hard. Harsh Bankrewal, Vice President (Industry), provided a grim forecast for the local manufacturing landscape.
| Sector Impacted | Estimated Production Cost Increase | Potential Consequence |
| MSMEs & Large Industry | 15% – 20% | Loss of competitiveness & potential layoffs |
| Domestic Households | High | Severe dent in monthly savings |
| Agriculture | Significant | Increased burden on farmers |
“Electricity is not a tool for revenue generation; it is the backbone of industry and development,” remarked Bankrewal, warning that the hike would discourage fresh investments in Jharkhand.
Legal and Regulatory Demands
The SCCI’s comprehensive objection cites Sections 61 and 62 of the Electricity Act, 2003, emphasizing that the JSERC has a constitutional obligation to protect consumers.
The Chamber has demanded:
- Total Rejection of the current tariff hike proposal.
- Full Transparency in cost data submitted by JBVNL.
- Efficiency-Linked Tariffs that reward performance rather than penalizing consumers for utility losses.
- Cost-Based Pricing strictly adhered to regulatory principles.
What’s at Stake?
The Chamber warned that forcing current consumers to pay for accumulated revenue deficits from previous years is a form of “intergenerational injustice.” As the JSERC prepares to review the true-up and Annual Performance Review (APR) data, all eyes are on the commission to see if they will uphold public interest or allow the state utility to proceed with the record-breaking increase.
