Patna, Bihar’s two state-owned distribution companies, North Bihar Power Distribution Company Ltd and South Bihar Power Distribution Company Ltd, have submitted a tariff petition to the Bihar Electricity Regulatory Commission (BERC) seeking an across-the-board increase in electricity rates effective 1 April 2026, the start of the 2026-27 financial year.
The petition, filed on an “unsubsidised” basis (i.e. reflecting full cost recovery without government subsidy), proposes a minimum hike of ₹0.35 per unit for most consumer categories and the elimination of the long-standing differential between rural and urban domestic tariffs.
Key Highlights of the Proposal
– Uniform domestic tariff: The existing gap between rural and urban household rates will be removed. All domestic consumers (including Kutir Jyoti/BPL connections) would move to a single tariff of ₹7.77 per kWh, up from the current unsubsidised rate of ₹7.42 per kWh – a rise of ₹0.35 per unit.
– Urban slab rationalisation: The two existing consumption slabs for urban domestic consumers (0-100 units and above 100 units) will be merged into one, effectively giving consumers using more than 100 units a reduction of ₹1.18 per unit within the new structure, while lower-usage households face the full ₹0.35 increase.
– Agricultural consumers: Irrigation pump sets in rural areas would see rates rise from ₹6.74 to ₹7.09 per kWh; urban irrigation from ₹7.17 to ₹7.52 per kWh.
– Commercial and industrial categories: Increases range from ₹0.35 to ₹0.40 per unit across low-tension and high-tension segments. Large industries at 132 kV would pay ₹8.20 per unit (up from ₹7.85), while 33 kV and 11 kV consumers would face similar proportionate hikes.
– Public services: Street lighting (+₹0.35 to ₹9.38/kWh), public waterworks (+₹0.35 to ₹10.07/kWh), and the Jal Jeevan Hariyali (Har Ghar Nal ka Jal) scheme (+₹0.35 to ₹8.51/kWh) are also affected.
– Electric-vehicle charging stations: Proposed rate rises from ₹8.72 to ₹9.07 per kWh.
The discoms have simultaneously sought higher wheeling charges and minor adjustments in fixed/demand charges.
Regulatory Process and Subsidy Uncertainty
BERC has initiated public consultation, an obligatory step before final tariff determination. Objections and suggestions may be submitted until early January 2026, with public hearings scheduled in Patna, Begusarai, and Gaya between 6 January and 5 February 2026.
As has been the practice in Bihar, the state government typically announces subsidies after BERC approves the tariff order, thereby capping the effective rate paid by consumers. The quantum of subsidy for FY2026-27 remains unconfirmed; any shortfall in government funding would translate directly into higher bills.
The proposed unification of rural and urban domestic tariffs marks a significant policy shift, ending decades of lower rates for rural consumers. Analysts note that while the move promotes tariff rationalisation, it will disproportionately affect low-consumption rural households unless offset by enhanced subsidies.
A final tariff order from BERC is expected by March 2026.
