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Bihar Government announces electricity rate cut ahead of assembly elections

Published: ,Updated:

Consumers transitioning to prepaid meters will not face penalties for exceeding their approved consumption limits for the first six months.

Bihar CM Nitish Kumar
Bihar CM Nitish Kumar Image Source : Social media
Patna:

Ahead of the upcoming Bihar Assembly elections, Chief Minister Nitish Kumar's government has announced a major relief for electricity consumers in the state. Starting today, new electricity tariffs have been implemented, benefiting both rural and urban consumers alike. The rate reductions, effective from April 1, 2025, are expected to ease the financial burden on millions of residents.

As part of the new electricity rates, consumers with smart prepaid meters will receive a discount of 25 paise per unit, while rural consumers will see a reduction of 54 paise per unit. This benefit will apply to rural households consuming more than 50 units of electricity per month, impacting around 1.25 crore consumers.

Special benefits for smart meter users

The state government has also introduced additional incentives for consumers who install smart prepaid meters. For the first six months after installation, users will not be penalized for exceeding their prescribed load, offering them greater flexibility. In rural areas, these consumers will enjoy a savings of up to 79 paise per unit.

Special tariffs for cold storage units

A new category has been created for cold storage units, with electricity tariffs tailored to the needs of this essential industry. Cold storage facilities with contract demands of up to 74 kilowatts (kW) will be placed under the LT-IAS category, while those with capacities between 50 kVA and 1500 kVA will be given a separate classification.

Additionally, proposals for raising electricity rates for industrial units have been rejected, and industrial consumers who make digital payments will receive a discount of 1%, up to a maximum of Rs. 50,000.

New electricity tariff structure

Here’s a breakdown of the new electricity rates:

  • 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

With the implementation of these new rates, the Bihar government aims to provide financial relief to its citizens, particularly in rural areas where electricity costs have traditionally been higher. The move also comes as part of the state’s broader strategy to support the agricultural and industrial sectors, ensuring a more balanced and affordable power distribution system.

 

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