Big Relief for Bihar’s Electricity Consumers: 2% Rate Cut Effective April 1

Patna: In a move aimed at providing relief to residents of Bihar, the Nitish government has announced a significant reduction of 2 percent in electricity rates. The relief, applicable to all types of consumers, comes as a welcomed announcement from the Bihar State Electricity Regulatory Commission made on Friday. The new rates are slated to be effective from April 1, 2024, to March 31, 2025.

Earlier proposals by the South and North Bihar Power Distribution Company to increase rates by up to 36 to 40 paise per unit were met with opposition during public hearings across four districts, including Patna. Following careful consideration of consumer, organizational, and company officials’ input during these hearings, the commission members Parshuram Singh Yadav and Arun Sinha safeguarded the decision against the proposed increases.

The rejection of the electricity companies’ proposal, which sought a 3.03 percent increase in rates, underscores the commission’s commitment to balancing consumer interests with the financial health of energy providers.

The commission had actively solicited feedback from the general public, business organizations, and industrialists regarding the proposed rate hikes. Public hearings held across four districts facilitated a comprehensive understanding of stakeholders’ concerns. This inclusive approach culminated in the decision announced today.

Emphasizing accountability within the electricity sector, the commission highlighted that any losses incurred by electricity suppliers in Bihar were attributable to their own negligence. Consumers, it affirmed, were already paying appropriate amounts, necessitating a reduction rather than an increase in rates.

Recent deliberations during Bihar’s budget session underscored the government’s stance on electricity provision. Chief Minister Nitish Kumar reaffirmed the administration’s commitment to providing electricity without resorting to free distribution, a model adopted by many other states. The current subsidy of Rs 14 thousand crores, Nitish noted, was a testament to this balanced approach.

Discussing the budget of the Electricity Department, Energy Minister Bijendra Yadav echoed Kumar’s sentiments, stressing the need for fiscal responsibility. Yadav emphasized that funds were not limitless, prompting the government to seek sustainable solutions. He identified urban areas, particularly those with VIP residents, as hotspots of electricity-related challenges, hinting at targeted interventions to address such issues.