Bihar Industries Association Reacts to 2026-27 Electricity Tariff Order
The Bihar Industries Association (BIA) has issued a mixed response to the Bihar Electricity Regulatory Commission's (BERC) electricity tariff order for the fiscal year 2026-27. While acknowledging certain positive measures, the association expressed significant disappointment over the lack of tariff reductions and ongoing concerns regarding high KVA charges.
Disappointment Over Tariff Stagnation and High KVA Charges
BIA president Ram Lal Khetan highlighted that the BERC did not increase per-unit electricity charges for any consumer category. However, he emphasized that industries had anticipated a tariff reduction this year. Khetan pointed out that consumers are still grappling with the impact of a sharp and unexpected rise in both unit charges and KVA charges implemented three years ago.
During public hearings, the BIA had advocated for passing on the improved financial performance of power distribution companies—including gains from reduced transmission and distribution losses—to consumers through lower tariffs. Khetan lamented that this expectation was not met in the current order.
Sanjay Bharatiya, chairman of the BIA Energy Committee, voiced particular concern over the persistently high KVA charges. He noted that these charges were nearly doubled three years ago and remain unchanged, despite the absence of government incentive support. "We had hoped for a rational reduction in KVA charges, especially to aid industrial consumers. The lack of such relief has caused considerable disappointment within the industrial sector," Bharatiya stated.
Positive Steps Welcomed by the Association
Despite these criticisms, the BIA welcomed several aspects of the BERC order. The association appreciated the commission's rejection of proposals by power companies to increase KVA charges by up to 85% and to cap incentives for online bill payments, both of which the BIA had opposed.
Additionally, the BIA commended the merger of the DS-II and NDS-I and II categories into a single slab while retaining lower slab energy charges. This consolidation is expected to provide tariff relief of approximately Rs 1.53 per unit for DS-II consumers, Rs 0.42 for NDS-I consumers, and Rs 1.20 for NDS-II consumers.
The association also welcomed reduced fixed charges for LTIS-I, lowered from Rs 288 to Rs 278 per KVA per month, and for LTIS-II, reduced from Rs 360 to Rs 350. Khetan suggested that similar rationalization should be extended to high-tension (HT) consumers to ensure broader equity in tariff structures.
Overall, the BIA's response underscores a cautious optimism tempered by unmet expectations for more substantial relief, reflecting ongoing challenges in balancing industrial costs with regulatory decisions in Bihar's power sector.
