Patna: Electricity consumers in Bihar who are switching from postpaid to smart prepaid meters have received major relief from the burden of paying outstanding dues in a single lump sum.
The Bihar Electricity Regulatory Commission (BERC) has introduced an installment-based system for recovering old electricity bill arrears. Depending on the outstanding amount, consumers will now be allowed to clear their dues over 12, 18 or 24 months.
The new system has come into effect across Bihar and is aimed at making the recovery of long-pending dues more manageable for consumers while ensuring systematic recovery by power distribution companies.
How many months will consumers get to repay dues?
The repayment period will depend on the total outstanding electricity bill:
- Up to ₹10,000: 12-month repayment period
- More than ₹10,000 and below ₹15,000: 18-month repayment period
- More than ₹15,000: 24-month repayment period
This means consumers with higher arrears will receive a longer period to clear their outstanding bills instead of having to pay the entire amount upfront.
Relief for consumers shifting to prepaid meters
The decision is particularly significant for consumers who previously had postpaid connections and accumulated outstanding dues before being shifted to smart prepaid meters.
The rapid installation of smart prepaid meters across Bihar had raised questions about how old arrears would be recovered. The new mechanism provides a defined repayment structure, allowing consumers to clear their previous dues gradually.
At the same time, power distribution companies will be able to recover outstanding amounts through a structured process.
Commission directs power companies to implement system
The decision was taken by a bench of the Bihar Electricity Regulatory Commission, comprising Commission Chairman Amir Subhani, Legal Member P.S. Yadav and Technical Member Manoj Kumar.
The order followed hearings on petitions filed by South Bihar Power Distribution Company Limited (SBPDCL) and North Bihar Power Distribution Company Limited (NBPDCL).
Both distribution companies have been directed to implement the new system immediately.
Installment details to be integrated with smart meters
The Commission has also directed power companies to integrate the installment-based recovery mechanism with their billing systems and smart prepaid meter infrastructure.
Consumers are expected to have access to information about their total outstanding dues and the amount being recovered through monthly installments.
The Commission has emphasised transparency so that consumers can track their arrears, payments and remaining balance and avoid confusion or disputes.
What was the earlier system?
Previously, there was no uniform mechanism for recovering outstanding dues when consumers shifted from postpaid to prepaid meters.
In some cases, recovery of old arrears was linked to current electricity consumption. A system reportedly existed under which around one-third of the current consumption bill could be adjusted towards outstanding dues.
This could result in varying recovery amounts. During periods of higher electricity consumption, such as summer, the recovery amount could increase, while consumers with lower consumption could see smaller deductions.
125-unit free electricity scheme also created complications
The state government’s free electricity provision of up to 125 units also created questions about recovery of old arrears for consumers with low or zero current bills.
When current consumption resulted in little or no payable electricity bill, the mechanism for recovering previous dues could become unclear to consumers.
The new installment-based system is expected to provide greater clarity by establishing a fixed repayment period according to the amount of outstanding dues.
For consumers, the key change is that old electricity arrears will no longer necessarily have to be cleared in one large payment when shifting to a smart prepaid meter.
