BIA gives mixed response to BERC tariff order, seeks relief for industry

Patna: The Bihar Industries Association (BIA) on Wednesday gave a mixed response to the Bihar Electricity Regulatory Commission’s (BERC) electricity tariff order for 2026-27.

BIA president Ram Lal Khetan said the BERC had not increased per-unit electricity charges for any consumer category, but industries had expected a tariff reduction this year. He said consumers were still bearing the impact of the sharp and unexpected rise in both unit charges and KVA charges imposed three years ago.

Khetan said during public hearings, the BIA had urged that the improved financial performance of power distribution companies, including gains from lower transmission and distribution losses, should be passed on to consumers through reduced tariffs. He said expectation had not been fulfilled in the present order.

BIA Energy Committee chairman Sanjay Bharatiya expressed concern over high KVA charges, saying they were nearly doubled three years ago and remain unchanged despite no govt incentive support. “We had hoped for a rational reduction in KVA charges, particularly to support industrial consumers. The absence of such relief has led to considerable disappointment within the industrial sector,” he said.

At the same time, BIA welcomed several positive steps. It appreciated the BERC for rejecting proposals by power companies to raise KVA charges by up to 85% and to cap incentives for online bill payments, both opposed by the BIA.

The BIA also welcomed the merger of DS-II and NDS-I and II categories into one slab while retaining lower slab energy charges. It said this would give tariff relief of about Rs1.53 per unit for DS-II, Rs0.42 for NDS-I and Rs1.20 for NDS-II consumers.

BIA also welcomed lower fixed charges for LTIS-I, reduced from Rs288 to Rs278 per KVA per month, and LTIS-II, from Rs360 to Rs350. Khetan said similar rationalisation should be extended to HT consumers.