Ahead of the Bihar Assembly elections, Chief Minister Nitish Kumar has announced a major relief for domestic electricity consumers. Starting August 1, 2025, all households in the state will receive 125 units of electricity free every month. This move is expected to benefit around 1 crore 67 lakh families across Bihar.

What Did Nitish Kumar Announce?

Nitish Kumar said that from the July electricity bill (payable in August), all domestic consumers will receive 125 units of electricity free of cost. He added that the government has also decided to promote solar power generation by installing solar panels on rooftops or nearby public land over the next three years, with the consent of the consumers.

Current Electricity Rates in Bihar

Electricity tariffs in Bihar depend on the consumer category and consumption slab. Here’s a summary:

Domestic Consumers (DS-1)

• First 50 units: Rs 7.57 per unit

• Above 50 units: Rs 8.11 per unit

• Fixed charge: Rs 40 per kW per month

Domestic Consumers (DS-2 – Demand-Based)

• Rs 7.57 per unit

• Fixed charge: Rs 80 per kW per month

Urban Domestic Consumers

• First 100 units: Rs 7.42 per unit

• Above 100 units: Rs 8.95 per unit

Rural Prepaid Meter Consumers

• Combined discount of 79 paise per unit (54 paise slab revision + 25 paise smart meter benefit)

What Will Be the Benefit of 125 Free Units?

If the average cost of electricity is taken as Rs 7.50 per unit, then:

• 125 units × Rs 7.50 = Rs 937.50 saved per household per month

• This means each family could save between Rs 900 and Rs 950 per month, depending on their consumption pattern and category

This relief is especially meaningful for low- and middle-income households that typically pay monthly bills of Rs 600 to Rs 800. Many beneficiaries have said the saved amount will now be used for groceries and essential household needs.

Financial Impact on the State Government

The government will bear the cost of supplying 125 free units to each of the 1.67 crore households:

• 125 units × Rs 7.50 = Rs 937.50 per household

• Total monthly cost = Rs 937.50 × 1.67 crore families = Rs 1,565.63 crore

• This is the approximate monthly financial burden the scheme would place on the Bihar government if every eligible household avails the benefit.