Patna, 26 March 2021: Electricity rates have been hiked in Bihar despite the Corona crisis. The new rate will come into effect from April 1. There has been an increase of 0.63 percent in the financial year 2021-22.
This will increase the electricity rate in Bihar from 5 to 10 paise per unit. The Bihar Electricity Regulatory Commission has determined this. This tariff order will come into effect from April 1, 2021, and will remain in effect until March 31, 2022, or until the next tariff order is issued by the Commission. Late fine has also been increased.
Five companies jointly proposed to determine the rate of electricity. Out of this, a decision had already been taken on the proposal of three companies. The new rates have been set after the decision on the proposal of two companies South and North Bihar Power Distribution Company. Both these companies had already proposed 9 to 10 percent hike in the electricity rate. South Bihar Power Distribution had shown a loss of 42.86 percent and North Bihar Company 27.71 percent. Therefore, the pressure to increase the rate was high. After a public hearing on this, the commission has decided to increase the rates.
The Commission has argued at the rising rates that the distribution companies proposed a total increase of 9.22 per cent in the retail electricity sales rate. But keeping in view the revenue situation of both the companies in the financial year 2021-22, the commission has increased the rate by a total of 0.63 percent in the financial year 2021-22.
There are a total of one crore 58 lakh 77 thousand 310 electricity consumers in Bihar in the year 2020. The estimated number of consumers is 1,66,60,541 in the financial year 2020-21 and 1,75,24,067 in 2021-22.
Commission has also taken these decisions:
The proposal of a bi-directional meter testing fee approved by the distribution company.
A new category has been created for electrical vehicles
A proposal for a three percent discount to consumers with prepaid smart meters proposed by the distribution company approved
Late fine offered by the distribution company has been increased from 1.25 percent to 1.54 percent per month. This will be applicable from 10 days onwards
The loss target of both the distribution companies has been set at 15 percent in the financial year 2021-22. The loss will not be passed on to the consumers for more damage