The Bihar government is preparing to request an additional budget of Rs 3,000 crore for the 2026-27 fiscal year to maintain electricity subsidies. This funding is intended to support a growing consumer base that is expected to reach 2.33 crore by early 2025. The decision comes alongside the Bihar Electricity Regulatory Commission announcement that power rates will remain unchanged for the next financial year.
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What are the electricity rates and subsidy details for 2026-27?
The Bihar Electricity Regulatory Commission (BERC) has rejected proposals for a tariff hike, keeping domestic rates at Rs 7.42 per unit before subsidy. The state government provides significant relief by offering 125 units of free electricity to over 1.86 crore domestic consumers under the Mukhya Mantri Vidyut Upbhokta Sahayta Yojana. With the government subsidy, rural domestic consumers effectively pay only Rs 2.45 per unit instead of the base rate of Rs 7.42. This financial support ensures that the common man is not burdened by the rising costs of power distribution and maintenance.
What is the new Time of Day (ToD) tariff system?
A major change starting April 1, 2026, is the introduction of the Time of Day (ToD) tariff for nearly 87 lakh consumers using smart meters or having a load above 10 kilowatts. This system offers a 20% rebate on the base tariff for electricity used during off-peak hours between 9 am and 5 pm. However, during the peak hours of 5 pm to 11 pm, a premium of 10% for domestic and 20% for commercial users will be applied. Agricultural consumers are currently exempt from this new pricing structure, while normal rates apply during late-night hours from 11 pm to 9 am.
