Bihar Power Subsidy Scheme: Regarding the free electricity provided, the Bihar State Power Holding Company Limited (BSPHCL) has clarified the calculation of the 125 units of free electricity for domestic consumers. According to the company, the free units are calculated based on a monthly period of 30 days. If the billing period is longer or shorter than 30 days, a pro-rata method is applied.

The limit is determined using 30 days as the standard.

According to information released by BSPHCL, if a consumer's bill is for a period of 40 days and the total consumption is 200 units, the 125-unit free limit will not apply immediately. It will be increased or decreased on a pro-rata basis. Consumers can understand this in this way.

For example,
125 × 40 ÷ 30 = 166.66 units.

This means that approximately 167 units will be free of energy charges in 40 days.

The consumer will be charged for the remaining units.

If the total consumption in 40 days is 200 units, then up to 167 units of electricity will be considered free. The consumer will be required to pay the energy charge (including electricity tax) and fixed charges for the remaining 33 units.

In addition, the higher of 75 percent of the sanctioned load or the prescribed fixed charge will be payable for the entire billing period.

Learn what pro-rata is here.

Pro-rata means 'proportional' or 'according to the ratio'. This means that the free units will be calculated in proportion to the number of days in the billing period. This system has been implemented to provide fair benefits to consumers.

This scheme is in effect from August 1, 2025.

The Bihar government has implemented a free electricity scheme for up to 125 units for all domestic consumers from August 1, 2025. Benefits will begin accruing from the July 2025 consumption bill.

Benefits to Consumers
Up to 125 units of electricity are completely free every month.

Bills below 125 units are "zero."

Approximately 16.7 million families benefit.

Smart prepaid and postpaid consumers are included.

Important advice for consumers

The company has advised consumers to carefully review the billing period (number of days) and total unit consumption recorded on their electricity bills. The benefit of free electricity depends entirely on the billing period.

According to BSPHCL, the objective of this scheme is to maintain transparency and ensure that the benefits of the scheme reach every eligible consumer in a fair manner, so that as many consumers can benefit from it.

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