Bihar Issues Draft DSM Regulations, 2025 to Strengthen Grid Stability and Compliance

The Bihar Electricity Regulatory Commission (BERC) has released a draft of the Deviation Settlement Mechanism (DSM) and Related Matters Regulations, 2025, to align the state’s intra-state electricity framework with the latest Central Electricity Regulatory Commission (CERC) DSM Regulations, 2024.

The move comes after CERC revised commercial principles for deviations by buyers and sellers, reflecting evolving market realities and emerging trends in both intra- and inter-state power operations.

The new regulations are designed to ensure that state entities under the control of SLDC-Bihar adhere strictly to their scheduled drawal and injection of electricity, thereby enhancing grid security and operational stability. They also aim to harmonise Bihar’s intra-state deviation framework with central guidelines, following the principles outlined in the National Electricity Policy (NEP) and the Tariff Policy, which mandate implementation of the Availability Based Tariff (ABT) at the state level.

BERC had previously notified the Intra-State ABT and DSM Regulations, 2020, in line with the CERC’s 2014 regulations. However, the latest amendments by the central commission necessitated updating the state-level framework. The draft 2025 regulations reflect these changes, incorporating revised methodologies for deviation settlement and commercial mechanisms for both sellers and buyers. As the Commission notes in its consultative paper, “Keeping in view the changes in the framework and methodologies adopted by the Central Commission for inter-state deviations by regional entities, it has become necessary to amend/modify the existing DSM Regulations at the intra-state level. Accordingly, draft BERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2025 has been prepared, which shall be applicable to state entities under the control area jurisdiction of SLDC-Bihar.”

The Commission has initiated a suo-motu proceeding to frame the new regulations and has issued a public notice inviting comments, suggestions, and objections from stakeholders by September 8, 2025. A public hearing will also be conducted to allow participants to share their views on the proposed rules and their potential impact on the state’s electricity sector.