India's Bihar Electricity Regulatory Commission rejects tariff hike, freezes power rates for 2026-27
Change
India's Bihar Electricity Regulatory Commission rejected distribution companies' proposal to raise energy charges by 35 paise per unit, set tariffs unchanged from April 1, 2026 through March 31, 2027, and merged two consumption slabs into single categories for three consumer groups.
Why it matters
Distribution companies are prohibited from implementing the proposed per‑unit increase and must live within the Commission‑approved revenue envelopes for FY 2026‑27. The Commission approved net Aggregate Revenue Requirements of ₹16,555.69 crore for North Bihar Power Distribution Company Ltd and ₹18,908.97 crore for South Bihar Power Distribution Company Ltd, which constrain cost recovery via tariffs. The merger of two slabs into single rates removes the higher second‑tier per‑unit charge for specified urban and commercial consumers and lowers charges for about 27 lakh households.
Implications
- • North Bihar Power Distribution Company Ltd and South Bihar Power Distribution Company Ltd must operate within their approved net Aggregate Revenue Requirement figures for FY 2026-27 and cannot implement additional energy‑charge increases.
- • North Bihar Power Distribution Company Ltd and South Bihar Power Distribution Company Ltd billing and IT teams must update tariff schedules and customer billing systems to merge DS-II, NDS-I and NDS-II slabs into single rates and apply the approved lower energy charge effective April 1, 2026.
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