BERC Electricity Tariff Order FY 2026-27: Bihar Retains Existing Rates and Simplifies Slab Structures

The Bihar Electricity Regulatory Commission (BERC) has issued its comprehensive tariff order for the financial year 2026-27, maintaining existing electricity rates for the state’s 2.22 crore consumers. In a significant regulatory move, the Commission explicitly rejected a 35-paise per unit hike in energy charges proposed by the state’s two distribution companies (DISCOMs)—North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). The order specifies a net Aggregate Revenue Requirement (ARR) of ₹16,555.69 crore for NBPDCL and ₹18,908.97 crore for SBPDCL, determining that the utilities are positioned to operate with a revenue surplus without additional burden on the consumer base.

Structural Rationalization: Merger of Consumer Slabs

To enhance billing transparency and simplify the tariff schedule, the Commission has mandated the merger of multiple consumption slabs into unified categories. In each instance of rationalization, BERC adopted the lower energy charge of the previous tiers to ensure direct financial relief.

The specific categories affected by these mergers include:

• DS-II (Urban Domestic): The Commission replaced the previous two-tier system (₹7.42/unit and ₹8.95/unit) with a flat energy charge of ₹7.42/unit. This resulted in an effective reduction of ₹1.53/unit for consumers in higher consumption brackets.
• NDS-I (Rural Commercial): Existing tiers were consolidated into a single slab, yielding an effective reduction of ₹0.42 per unit.
• NDS-II (Urban Commercial): The Commission integrated the previous tiers (₹7.73/unit and ₹8.93/unit) into a unified ₹7.73/unit slab, providing an effective reduction of ₹1.20 per unit.

Modernization and Renewable Energy Measures

The BERC has introduced a voluntary Green Power Tariff at an approved rate of ₹0.68 per unit, applicable as an additional charge for consumers opting for 100% renewable energy. Notably, the Commission significantly lowered this rate from the ₹1.65/kWh proposed by the DISCOMs.

Effective April 1, 2026, the Commission has mandated the implementation of Time of Day (ToD) Tariffs. This requirement applies to all consumers (excluding agriculture) with a contract demand above 10kW and all users currently utilizing smart meters.

The approved ToD structure is defined as follows:

• Peak Hours (5 PM to 11 PM): A premium of 20% over normal rates for commercial and industrial consumers, and 10% for other applicable categories.
• Off-Peak Hours (9 AM to 5 PM): A rebate of 20% (billed at 80% of the normal tariff).
• Normal Hours (11 PM to 9 AM): Standard tariff rates apply.

Industrial Adjustments and Stakeholder Reactions

The order includes specific reductions in monthly fixed charges to support the state’s industrial and small commercial sectors:

• LTIS-I (Rural Industrial): Reduced from ₹288 to ₹278 per kVA/month.
• LTIS-II (Urban Industrial): Reduced from ₹360 to ₹350 per kVA/month.
• NDS-II (Contract load <0.5kW): Reduced from ₹200 to ₹150 per connection/month.

The Commission also officially classified mushroom farming—including cultivation methods utilizing air conditioning or power-driven machinery—under the agricultural category.

In response to the order, the Bihar Industries Association (BIA) offered a mixed reaction. While welcoming the reduction in fixed charges and the slab mergers, BIA representatives expressed disappointment that energy charges were not reduced more broadly given the DISCOMs’ improved financial performance and revenue surpluses.

Operational and Financial Metrics for DISCOMs

The Commission’s approved financial and operational targets for the state’s utilities are summarized below. These figures include trued-up gaps and surpluses from previous fiscal years.

Approved Revenue Surplus and Distribution Loss Targets for FY 2026-27

Power Procurement and Energy Security

To address a projected Renewable Purchase Obligation (RPO) deficit of 4,347 million units by FY 2029-30, BERC approved the long-term procurement of 450 MW Firm and Dispatchable Renewable Energy (FDRE).

Key technical and financial details of the agreement include:

• Agencies: SJVN Limited (Implementing Agency) and Acme Solar (Developer).
• Capacity: 450 MW providing 1,800 MWh of assured peak power.
• Pricing: Approved tariff of ₹6.74/kWh plus a ₹0.07/kWh trading margin for SJVN.
• ISTS Waiver: The project is eligible for a 100% waiver of Inter-State Transmission System (ISTS) charges if commissioned by June 30, 2028.

Effective Date and Validity

The provisions of the BERC Tariff Order for FY 2026-27 will take effect on April 1, 2026. The order remains valid until March 31, 2027, or until the issuance of the subsequent tariff order.