The Bihar Electricity Regulatory Commission has been established by the Government of Bihar under Section 17 of the Electricity Regulatory Commissions Act,1998 vide Government of Bihar Notification no. 1284 dated 15th April, 2002. The Electricity Regulatory Commissions Act, 1998 along with the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 was repealed by Section 185 of the Electricity Act, 2003. The first proviso of Section 82 (1) has ensured continuity of the Commission along with that of State Electricity Regulatory Commissions by laying down that the State Regulatory Commission established by the State Govt. under Section 17 of Electricity Regulatory Commissions Act, 1998, and functioning as such immediately before the appointed date shall be the State Commission for the purpose of the Electricity Act, 2003.

The BERC was constituted in May 2005. The first Chairman of the Commission was Hon’ble Justice B.N.P. Singh who took oath of office on 20th May, 2005 before His Excellency the Governor of Bihar and retired on 17th April, 2007. The other Members namely Shri B.K. Halder and Shri S.K. Jayaswal who were appointed in May, 2005 and took oath of Office on 11th July and 26th July, 2005 respectively before His Excellency the Governor of Bihar. The Commission became functional from 15th August, 2005. The Commission is located at Vidyut Bhawan-II, Jawahar Lal Nehru Marg (Bailey Road), Patna 800 021.

The Electricity Act, 2003 has come into force w.e.f. 10.06.2003 consolidating the laws relating to Generation, Transmission, Distribution and Trading and use of Electricity and for taking measures conducive to the development of Electricity Industry, promoting competition therein, protecting interest of consumers and supply of electricity to all, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies. Generation has been delicensed to promote power generation and reduce the gap between demand and supply to the least possible. This Act aims to promote investment through private participation and also to provide the consumers with quality power and service at the reasonable and affordable cost. It also protects the private investors by protecting the investment by grant of return on the investment. It is expected that the competition in power sector will bring better technology, improved service and reduced cost making the electricity cheaper for the end-users.


The State Commission shall discharge the following functions, namely–

(a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the that State: Provided that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;

(b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State;

(c) facilitate intra-state transmission and wheeling of electricity;

(d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;

(e) promote congenration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence;

(f) adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;

(g) levy fee for the purposes of this Act;

(h) specify State Grid Code consistent with the Indian Electricity Grid Code specified with regard to grid standards;

(i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees;

(j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; and

(k) discharge such other functions as may be assigned to it under this Act.

(2) The State Commission shall advise the State Government on all or any of the following matters, namely :-
(i) promotion of competition, efficiency and economy in activities of the electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the State;
(iv) matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by State Government.

(3) The State Commission shall ensure transparency while exercising its powers and discharging its functions.

(4) In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and National Tariff Policy notified by Central Government under Section 3 of Electricity Act, 2003.