The electricity rates in Bihar are likely to see an upward revision starting April 1, 2026. Power distribution companies have proposed a hike of approximately 35 paise per unit to recover pending dues worth 3200 crore rupees. This proposal has been submitted to the Bihar Electricity Regulatory Commission (BERC) for final approval after the companies received a favorable ruling from the electricity tribunal.
Why is the electricity rate increasing in Bihar?
The distribution companies NBPDCL and SBPDCL are seeking to recover arrears amounting to 3200 crore rupees. These liabilities date back to 2012 when the Bihar State Electricity Board was split into different entities. The companies argue that the state government was supposed to settle these dues but the matter remained pending. Recently the Electricity Appellate Tribunal (APTEL) ruled that the companies have the right to recover these funds with interest from the tariff.
Key details of the new tariff proposal
The proposed rates will be applicable for the financial year 2026-27 if approved by the commission. BERC is currently reviewing suggestions from public hearings held in cities like Patna, Begusarai, and Gaya. A final decision on the new rates is expected to be announced by the second week of March 2026. The companies have clarified that if the government does not pay the 3200 crore dues directly, the hike will be mandatory.
| Details | Information |
|---|---|
| Proposed Hike | 35 Paise per unit |
| Total Arrears | 3200 Crore Rupees |
| Effective Date | April 1, 2026 |
| End Date | March 31, 2027 |
| Regulatory Body | Bihar Electricity Regulatory Commission |
Impact on common consumers and subsidy
The actual increase in monthly bills will depend on the subsidy provided by the Bihar state government. Even if the commission approves the higher tariff, the government can choose to increase the grant to keep the burden low for the general public. Additionally, there is a proposal under consideration to merge two different slabs for urban domestic consumers into a single rate to simplify the billing process for everyone.
