Patna: Electricity consumers in Bihar may face higher bills from April 1, after the state’s two power distribution companies proposed an increase in tariffs to recover Rs 3,200 crore in outstanding dues.
North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) have submitted tariff proposals to the Bihar Electricity Regulatory Commission (BERC), seeking an increase of about 35 paise per unit. The commission has concluded hearings on the matter, according to officials familiar with the process.
The proposed hike is linked to liabilities dating back to the restructuring of the Bihar State Electricity Board in 2012, when it was unbundled into separate generation, transmission and distribution entities. At the time of the split, officials say, Rs 1,100 crore was owed to the board. With additional outstanding amounts added, the total recoverable dues have risen to Rs 3,200 crore.
Power company officials argue that the state government had committed to bearing the board’s liabilities during the restructuring process. However, they say the dues have not yet been cleared, prompting the distributors to seek recovery through revised tariffs.
If the regulator approves the proposal and the government does not step in to settle the outstanding amount, the revised rates would come into force on April 1, 2026 and remain applicable until April 1, 2027.
Under the current framework, electricity tariffs in Bihar are determined by the Bihar Electricity Regulatory Commission based on expenditure data submitted by the distribution companies. The state government can cushion consumers from higher rates by providing subsidies, effectively reducing the final burden on households and businesses.
Whether the proposed increase is implemented will depend on the regulator’s final order and the extent to which the state government chooses to offset the additional cost.
