In a positive development for millions of electricity consumers in Bihar, the Bihar Electricity Regulatory Commission has rejected a proposal for a 3.03% increase in electricity rates for the financial year 2024-25. Instead, a decision has been made to decrease electricity rates by up to 2% across all consumer categories.
The commission, after conducting hearings on petitions submitted by power companies, announced the new rates on Friday. Taking into consideration the surplus revenue of supply companies, the commission has decided to reduce electricity rates by up to 2% for all consumer categories. This will result in a savings of up to 15 paise per unit for consumers.
Additionally, the commission accepted a proposal to generate electricity bills for agricultural consumers based on the crop harvesting cycle, allowing farmers to receive four electricity bills annually instead of monthly. Home-stay establishments were also granted approval to provide electricity at domestic category rates.
This decision follows a proposal by the electricity company in November 2023 to increase electricity rates by 4.39%. After completing a public hearing in January-February and considering suggestions from the public and data provided by the company, the commission has now announced the new electricity rates.
For the first time, the electricity company has reported profits, achieving the set targets and minimizing losses. In light of these developments, the Regulatory Commission has opted to lower electricity rates, providing relief to consumers in Bihar.
Current Tariffs and Approved Tariffs Without Subsidy:
– Domestic Lighting (Up to 50 units):
– Current Tariff: 7.57
– Approved Tariff: 7.42
– Subsidy Amount: 5.45
– Rural Domestic (Up to 50 units):
– Current Tariff: 7.57
– Approved Tariff: 7.42
– Subsidy Amount: 4.97
– Rural Domestic (Above 50 units):
– Current Tariff: 8.11
– Approved Tariff: 7.96
– Subsidy Amount: 5.11
– Urban Domestic (Up to 100 units):
– Current Tariff: 7.57
– Approved Tariff: 7.42
– Subsidy Amount: 3.30
– Urban Domestic (Above 100 units):
– Current Tariff: 9.10
– Approved Tariff: 8.95
– Subsidy Amount: 3.43
– Non-Domestic (Commercial) (Up to 100 units):
– Current Tariff: 7.94
– Approved Tariff: 7.79
– Subsidy Amount: 4.44
– Non-Domestic (Commercial) (Above 100 units):
– Current Tariff: 8.36
– Approved Tariff: 8.21
– Subsidy Amount: 4.00
– Low Tension (Industrial):
– Current Tariff: 7.94
– Approved Tariff: 7.79
– Subsidy Amount: 1.78
– HT General and Industrial:
– Current Tariff: 8.13
– Approved Tariff: 7.98
– Subsidy Amount: 1.58
– Street Light Service:
– Current Tariff: 9.18
– Approved Tariff: 9.03
– Subsidy Amount: 0.00
– Irrigation and Allied Services:
– Current Tariff: 6.89
– Approved Tariff: 6.74
– Subsidy Amount: 6.19
The Chief Minister had recently stated that the focus is on providing affordable electricity rather than free electricity to consumers. The decision aims to ensure the financial viability of the power sector while benefiting the people of Bihar.
