The Bihar government, under the leadership of Chief Minister Nitish Kumar, has announced a significant reduction in electricity tariffs ahead of the upcoming Assembly elections, bringing relief to millions of consumers across the state.
The revised electricity rates, which take effect from April 1, aim to lower the financial burden on both rural and urban households, as well as key industries such as agriculture and cold storage.
Under the new tariff structure, consumers using smart prepaid meters will benefit from a reduction of 25 paise per unit, while rural domestic consumers will see a more substantial cut of 54 paise per unit.
The revised rates will apply to rural households consuming more than 50 units of electricity per month, positively impacting approximately 1.25 crore consumers. This move is expected to make electricity more affordable for rural communities, where energy costs have historically been higher.
To further encourage the adoption of smart prepaid meters, the government has introduced additional incentives for consumers making the transition.
For the first six months following installation, consumers using these meters will not face penalties for exceeding their approved electricity consumption limits, offering greater flexibility in power usage. In rural areas, those using smart prepaid meters could see savings of up to 79 paise per unit, further reducing their electricity expenses.
In a bid to support the agricultural and food storage industries, the Bihar government has introduced a separate tariff category for cold storage units.
Under this new classification, cold storage facilities with contract demands of up to 74 kilowatts (kW) will fall under the LT-IAS category, while those with capacities ranging between 50 kVA and 1500 kVA will be classified separately to ensure fair and industry-specific tariff structures.
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The decision aims to provide cost-effective power solutions for businesses that rely on electricity-intensive refrigeration systems.
The government has also rejected proposals to increase electricity tariffs for industrial units, ensuring that manufacturing and production costs remain stable.
Additionally, industrial consumers making digital payments will receive a 1% discount on their electricity bills, with a maximum benefit cap of Rs. 50,000. This initiative is designed to promote digital transactions while providing financial relief to businesses.
The new electricity tariff structure is as follows:
- Kuteer Jyoti (0-50 units): Rs 7.42 per unit
- Rural Domestic (more than 50 units): Rs 7.42 per unit
- Urban Domestic (1-100 units): Rs 7.42 per unit
- Above 100 units: Rs 8.95 per unit
By implementing these revised tariffs, the Bihar government aims to make electricity more accessible and affordable for residents, particularly in rural areas where costs have traditionally been higher.
The decision also aligns with the state's broader objective of supporting key industries and ensuring balanced power distribution. With these measures, the government seeks to provide financial relief to households and businesses while encouraging technological advancements in electricity consumption.
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