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Home Bihar

Electricity Tariff Hike Looms as Power Companies Seek Approval for Higher Rates

Power distribution companies in Bihar have proposed a fresh revision of electricity tariffs for 2026–27, a move that could raise household bills if approved by the state regulator.

Staff Reporter by Staff Reporter
January 23, 2026
in Bihar
Reading Time: 2 mins read
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Patna: Electricity consumers in Bihar may be bracing for another squeeze on their monthly budgets, with power distribution companies seeking approval for a fresh round of tariff revisions from the state regulator.

Sources claimed that the distribution firms have submitted a tariff proposal for the 2026–27 financial year to the State Electricity Regulatory Commission, arguing that higher rates are necessary to cover rising operational costs, network losses and long-pending investments in the power system.

According to the proposal, the companies have projected a revenue requirement of around Rs 67,000 crore. This includes expenditure on transmission and distribution, routine maintenance, and capital investment aimed at strengthening the grid. Officials say additional spending has been earmarked to upgrade supply infrastructure in 16 districts, where demand has grown and reliability issues persist.

If cleared, the revised tariff structure would apply across categories — domestic, commercial, agricultural and industrial consumers — but households are expected to feel the impact most acutely. Energy experts warn that any sharp rise in domestic power bills would disproportionately affect middle- and lower-income families, already grappling with the effects of persistent inflation.

The ripple effects could extend beyond homes. Higher electricity costs for farmers and small industries may push up production expenses, with knock-on effects for food prices and local manufacturing. Farmer groups have indicated they would oppose any increase that raises irrigation costs or undermines farm incomes.

The regulatory commission is expected to convene public hearings on the proposal, giving consumers, civil society groups and sector experts an opportunity to raise objections and suggest alternatives. Only after this consultative process will a final decision be taken.

The commission has said it will weigh the financial viability of power utilities against the need to protect consumers from undue burden — a balance that is likely to be closely watched in the months ahead.

Tags: BiharBihar NewsElectricity TariffState Electricity Regulatory Commission

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