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Crackdown On Unpaid Bills in Bihar: Connections to Be Cut as Rs 13,000 Crore Recovery Drive Tightened

Unpaid electricity bills in Bihar will trigger disconnections and aggressive recovery of Rs 13,000 crore after Holi, targeting more than a million defaulters while offering instalment options and payment discounts but warning of penalties and inspections.

Lakshita Kashyap by Lakshita Kashyap
March 3, 2026
in Bihar
Reading Time: 1 min read
Crackdown On Unpaid Bills in Bihar: Connections to Be Cut as Rs 13,000 Crore Recovery Drive Tightened
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Patna: In Bihar, power distributors have announced an aggressive drive to recover unpaid electricity dues amounting to Rs 13,000 crore, with disconnections set to intensify after the Holi festival. Officials of the state’s South and North Bihar distribution companies said consumers who have defaulted on payments for long periods will face strict action, including immediate suspension of supply.

More than a million postpaid consumers are reported to have outstanding bills. Authorities stated that while instalment options are available for those unable to clear dues in a single payment, continued non-payment will trigger disconnection. Consumers seeking relief can apply to their local executive engineer for a structured payment plan.

The companies are also enforcing a monthly interest charge of 1.5% on overdue amounts, translating to an annual rate of 18%. Upon disconnection, consumers will be required to pay not only arrears but also additional fees for cutting and restoring their supply.

Officials have introduced limited incentives for timely payments. Customers settling bills within 15 days of issuance will receive a 1.5% discount, with an extra 1% rebate for online transactions. Rural consumers may also qualify for a special concession if payments are made consistently over three months.

Alongside the arrears drive, the department has announced intensified inspections of smart prepaid meters, particularly in households suspected of bypassing systems to steal electricity. Distribution transformers will be fitted with monitoring devices to detect discrepancies between consumption and billing. If irregularities are identified by March 31, authorities have warned of punitive measures.

Smart meter users will continue to receive a 25 paise per unit discount, but officials stressed that violations will attract heavy fines. The move reflects the government’s broader effort to stabilise revenue from the energy sector while tackling widespread non-payment.

Tags: BiharBihar electricityBihar NewsDisconnectionPower DistributionRecoveryUnpaid Bills

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