If your consumption is 200 units, how much will the bill come? Know the mathematics of the new scheme: Bihar-free-electricity-125-units-scem

Chief Minister Nitish Kumar has made a historic announcement for the people of Bihar, which will provide direct relief to more than 90% of the state’s domestic power consumers. Now electricity up to 125 units will now be absolutely free. The scheme has been presented by the government in the name of “100 % subsidy”, but in general language, it gives the power to consumers to use 125 units of electricity without paying any fee.

In the era of rising electricity prices and inflation, this step is no less than a relief package for millions of families. This will not only cut monthly expenses, but will also give special benefits to the economically weaker sections. The prevalence of the scheme, direct access and transparent billing systems make it effective.

What is 125 units free power scheme?

The scheme has been made for domestic consumers, in which they will not have to pay any fee on 125 units of electricity every month. The government will compensate it completely. That is, there will be no tax, no surcharge or any hidden expense. This facility is particularly beneficial for consumers whose monthly consumption is limited, such as small families, tenants, rural consumers etc.

Under this, the government has introduced this scheme as a subsidy, but the feeling of socio-economic reforms is clear behind it. This step can also be seen especially towards gaining public confidence before the election.

When and why the plan was announced?

Chief Minister Nitish Kumar announced the scheme just before the Bihar assembly elections. Its purpose was not only to provide economic relief, but also to show the government’s commitment in the power sector. The plan was announced in July 2025 and has been implemented from August 2025. Under this, the state government will have a financial burden of Rs 19,792 crore, which will be increased in the upcoming financial year.

Who will get the benefit of this scheme?

• Only domestic electricity consumers will get the benefit of this scheme.
• Those whose monthly consumption is 125 units or less will not have to pay any bill.
• If the consumption is more than 125 units, the additional unit will be charged.
• This means that if a consumer spends 200 units of electricity, then only 75 units bill will come. This bill will also be based on the current tariff rate. That is, this scheme is most beneficial for limited consumption.
• What will happen to many connections on the same name?
• If there are electricity connections in different houses or flats in the name of a person, then they will get the benefit of free electricity at only one place. That is, a profit on a name. But if there are separate connections in the name of the landlord and tenant, then both will get the benefit of this scheme.
• This rule has been made so that the scheme is not misused and the real benefits of this will be given to the needy consumers.
• How many people will be benefited from the scheme?
• According to Energy Minister Vijendra Yadav, currently there are a total of 1 crore 86 lakh 60 thousand domestic electricity consumers in Bihar. Out of these, about 1 crore 67 lakh 94 thousand consumers are 125 units or less monthly consumption. This means that more than 90% of consumers will directly benefit from this scheme.
• This figure indicates that the plan is not only nominal, but a large scale influence. Getting relief to such a large section is an example of a strong social scheme.
• Who directly benefit from the scheme?
• Small families, which use limited power equipment.
• The tenant, whose monthly use is limited.
• Rural consumers, where electricity equipment is low.
• Senior citizens, people living alone etc.
• Through this scheme, the state government has made it clear that it is standing with the poor and middle class. It will also have a direct impact on the social balance of the state.
• Process for smart meter consumers
• This scheme will be even more convenient for consumers with smart meters. Their meter data will automatically calculate how much unit is free and how much to pay. From August, he will see a discount of 125 units in his bill.
• Consumers will be able to see their bill on mobile app or web portal, in which it will be clearly told how many units were given free and how much were charged. If a consumer is already paid in the month of July, then his credit will be added to the August bill.
• What to do with non-smart meters?
• The manual billing process by Discom for non-smart meter consumers will continue. The consumer will get a bill based on old readings, which will show a cut of 125 units. It will be clearly written in the bill that subsidy has been given on which unit and which charge is being charged.