Bihar has long been the state with the lowest rates of electrification, lowest per capita consumption of electricity and has been known for poor quality of power supply. The utilities in Bihar are facing a great many challenges from lack of generation capacity, high cost of supply, need for network augmentation and low paying capacity of consumers. However, at the same time, many changes are also taking place and with the support from the Central and State Government, the power sector in Bihar is poised for a major transformation.

Given these unique features of Bihar power sector, our comments regarding the tariff petitions of the Generation, and Distribution utilities is focused on tariff design, measures needed for service quality and access commitments, need for effective planning and monitoring for loss reduction and with respect to mandate needed for integrated planning.

Our attempt through these recommendations is to bring to light some of the practices successful in other states. Moreover, the power sector in Bihar is set to grow and it is best that good practices are introduced in the early years of power sector growth. Our suggestions are organised based on priority of implementation in to immediate, medium and long term categories.