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Home News Bihar Slashes Power Tariffs: 1.25 Crore Rural Households to Get Cheaper Electricity

Bihar Slashes Power Tariffs: 1.25 Crore Rural Households to Get Cheaper Electricity

By Vishwapati
Patna: The Bihar electricity department has made a big decision for consumers, providing relief to 1.25 crore domestic consumers. There is good news for electricity consumers in rural areas of Bihar. A total of 1.25 crore domestic consumers in rural areas consuming more than 50 units of electricity will now receive electricity at a reduced rate of 54 paise per unit. Additionally, 60 lakh consumers using smart prepaid meters will benefit from a reduction of 25 paise per unit.

The Bihar Electricity Regulatory Commission made this decision on Saturday. Commission Chairman Amir Subhani, along with members Purushottam Singh Yadav and Arun Kumar Sinha, decided to set subsidy-free rates.

New rates will be effective from April 1

Commission Chairman Amir Subhani said that for the financial year 2025-26, the combined net ARR (Annual Revenue Requirement) of the South and North Bihar Power Distribution Companies has been approved at ₹30,645.26 crore, with a combined surplus of ₹107.55 crore. These rates will be applicable from 1 April 2025 to 31 March 2026.

The commission has opted for a subsidy-free approach. Now, the state government will announce the subsidy. If the government continues the current subsidy system, rural and urban consumers will benefit from lower electricity rates from April 1. However, if there are changes in the subsidy, power companies will issue revised rates.

2.08 crore electricity consumers in Bihar

There are a total of 2.08 crore electricity consumers in the state, including 62 lakh smart meter users. According to the commission’s decision, rural consumers will receive the most relief in their electricity bills. Additionally, tariff slabs have been made uniform for rural consumers, ensuring that they pay the same rate, which will benefit small-scale consumers.

KVAH tariff in NDS-1 and NDS-2

KVAH tariff will be applied to consumers with a load between 0.5 kW and 70 kW in the NDS-1 and NDS-2 categories. Meanwhile, cold storage facilities will now be billed at agriculture-based rates, providing relief to farmers. The Time of Day (TOD) tariff will be applied to industrial and commercial consumers with connections above 10 kW.

Increase in Green Tariff

The green tariff will be increased by 42 paise per unit. HT (High Tension) consumers will receive a 1% discount or a maximum of ₹50,000 for online payments. However, the proposal to raise rates for HTSS category consumers has been rejected.

No penalty for 6 months on consumption above approved load

Consumers switching from postpaid to prepaid meters will not have to pay a penalty for exceeding the approved electricity load for six months. This concession will also be extended to 90,000 new consumers taking connections, who will be given six months to adjust their load requirements.

Smart meter consumers will now have to pay penalty

Consumers who had smart prepaid meters installed six months ago will now be subject to penalties. They have already been informed whether their consumption exceeds the approved load. If such consumers wish to increase or decrease their load, they can apply through the power company’s ‘Suvidha App’.

The state government has also decided to promote renewable energy purchases, aiming to reduce losses and improve power supply.

(The author, Vishwapati, is a senior journalist based in Patna. He may be contacted at vishwapati25@gmail.com)

 

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