Bihar Electricity Regulatory Commission Announces No Tariff Increase for 2026-27
In a significant development for millions of power consumers, the Bihar Electricity Regulatory Commission (BERC) announced on Wednesday that there will be no electricity tariff hike for the 2026-27 financial year across all consumer categories. This decision comes as a relief to residents facing economic pressures, including LPG supply issues triggered by conflicts in West Asia.
Rejection of Discom Proposals
The regulatory body rejected proposals from both state power distribution companies—North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL)—that sought a 35 paise per unit increase in energy charges across all consumer categories. BERC chairman Amir Subhani confirmed that the commission thoroughly examined the proposals before making this determination.
"The proposal of Discoms for an increase in energy charges by 35 paise per unit across all categories of consumers is not accepted. There will be no hike in electricity tariff rate in the next financial year starting April 1," Subhani told reporters after announcing the tariff order.
Financial Approvals and Consumer Benefits
The full commission, comprising chairman Amir Subhani and members Parshuram Singh Yadav and Arun Kumar Sinha, announced tariff orders for fiscal year 2026-27 after reviewing petitions from both Discoms and other power companies including Bihar Grid Company and SLDC.
The BERC approved:
- Net Aggregate Revenue Requirement (ARR) of Rs 16,555.69 crore with revenue surplus of Rs 2.69 crore for NBPDCL
- Net ARR of Rs 18,908.97 crore with revenue surplus of Rs 1,931.35 crore for SBPDCL
These approvals consider revenue from approved power sales in FY 2026-27 and trued-up gaps/surplus from FY 2024-25, including carrying costs. The commission cited the financial position of utilities and the need to avoid burdening consumers as key factors in its decision.
Uniform Tariff Structure Implemented
The commission has implemented a uniform tariff rate for both urban and rural domestic consumers, replacing the previous system of differentiated rates for different consumption slabs. Current tariff rates that will remain unchanged include:
- Urban domestic consumers: Rs 7.42 per unit for first 100 units, Rs 8.95 per unit for consumption above 100 units
- Rural commercial users: Rs 7.79 per unit for up to 100 units
- Urban commercial consumers: Rs 7.73 per unit for first 100 units, Rs 8.93 per unit for consumption above 100 units
Government Subsidy Considerations
The announced tariff rates do not include the annual subsidy provided by the state government. The Bihar government is expected to announce electricity tariff subsidies for the 2026-27 financial year in the coming days. Currently, the state government provides 125 units of free electricity to power consumers across Bihar.
This decision benefits approximately 2.22 crore power consumers throughout the state, providing financial relief during a period of global economic uncertainty and regional supply chain disruptions.
