PATNA, Nov. 8 -- Bihar's Rs.23,000-crore annual electricity subsidy bill could shrink by around Rs.198 crore if all 3 million urban domestic consumers (presuming they all are financially well-off) who pay for power consumed beyond the monthly 125-unit free quota voluntarily surrender their entitlement, following appeals by chief minister Samrat Choudhary and Union minister Chirag Paswan. The potential saving, however, amounts to just 0.86% of the state's annual electricity subsidy expenditure, raising questions about the fiscal impact of the appeal even as it signals a possible rethink of Bihar's universal free-power policy. The benefit, provided under the Mukhyamantri Vidyut Upbhokta Sahayta Yojana (MVUSY), is available to domestic consumers across income groups, including affluent households and income-tax payers. Choudhary on November 1 urged financially well-off residents to give up the subsidy voluntarily, arguing that the money saved could be redirected towards development, particularly education. The appeal has since sparked discussions within the government about changing the scheme's eligibility criteria, including whether consumers whose monthly consumption exceeds 125 units should continue to receive the free-power benefit. According to government data, Bihar has around 19.4 million domestic electricity consumers, of whom an estimated 16 million have been receiving zero-charge bills over the last one year because their monthly consumption remains within 125 units. The remaining 30 lakh consumers, largely in urban areas, pay for consumption beyond the free limit. Unlike schemes that restrict free electricity to households staying below a specified consumption threshold, Bihar's MVUSY provides the 125-unit benefit irrespective of the consumer's total monthly consumption or income. This is the key distinction now under discussion. Under Bihar's arrangement, a household consuming 200 units gets the benefit of 125 free units and pays for the remaining 75. The subsidy is not withdrawn merely because consumption crosses the threshold. The government is now considering whether to move towards a model in which consumers crossing the monthly limit lose the free benefit altogether, officials said. Such a change would mark a significant departure from the scheme's original universal design. The appeal itself, however, remains voluntary. No formal decision to withdraw the benefit from consumers exceeding 125 units has been announced. Free or subsidised electricity is a major welfare measure in several states, but the eligibility rules and subsidy structures differ considerably. In Delhi, for instance, domestic consumers get a 100% subsidy on consumption up to 200 units a month. Those consuming 201-400 units receive a subsidy of up to Rs.800. The scheme, therefore, offers a partial benefit beyond the free threshold, rather than making the entire consumption free. In Punjab, households receive up to 300 units free a month. General-category consumers crossing the threshold pay for their entire consumption, while eligible Scheduled Caste, backward-class, BPL and freedom-fighter households pay only for units consumed beyond 300. Himachal Pradesh has also provided 125 units of free electricity. However, it has moved towards restricting the subsidy for income-tax payers and several categories of affluent consumers. Chief minister Sukhvinder Singh Sukhu surrendered his own subsidy in January 2025 and appealed to well-off households to follow suit. Bihar's model is distinctive because it extends the same 125-unit benefit across income groups, without a means test or a consumption-based disqualification. The government is now debating whether that universal entitlement should be retained. The state government spends around Rs.23,000 crore annually on electricity subsidies, according to chief minister Choudhary. He said the subsidy translates into Rs.8,000-10,000 per family annually. The latest state budget provides Rs.18,649 crore for the energy sector, including Rs.15,702 crore specifically earmarked for power tariff subsidies to distribution companies - North Bihar Power Distribution Company Ltd and South Bihar Power Distribution Company Ltd - to provide relief to domestic, agricultural and industrial consumers. The estimated Rs.198 crore saving from surrendering the benefit would represent only a fraction of this expenditure. It would also depend on the number of consumers who actually opt out. The subsidy is calculated against the Bihar Electricity Regulatory Commission's approved tariffs. For 2026-27, the tariff is Rs.7.42 per unit for rural domestic consumers, with a government subsidy of Rs.4.97 per unit. For urban domestic households, the approved tariff is Rs.7.42 per unit for the first 100 units and Rs.8.95 beyond that. The corresponding government subsidy is Rs.3.30 and Rs.3.43 per unit, respectively. At subsidised rates, the 125-unit benefit translates into a maximum monthly saving of Rs.550 for urban domestic consumers and Rs.306.25 for rural domestic consumers. The state's electricity consumption has also risen sharply. Annual per capita consumption increased from 75 units in 2005 to 401 units in 2026, according to the energy department. The appeal comes amid renewed political debate over Bihar's finances. Leader of Opposition Tejashwi Yadav has repeatedly accused the NDA government of being on the verge of bankruptcy, citing alleged corruption, revenue losses, a widening fiscal deficit and mounting debt. He has also questioned the government's ability to meet obligations such as salaries, scholarships, pensions and farmers' dues. The electricity subsidy, meanwhile, was one of the major welfare announcements made by Nitish Kumar before the November 2025 assembly elections. The cabinet approved the scheme in July 2025, with implementation from August 1. The NDA subsequently won 202 of the 243 assembly seats. Choudhary's appeal, therefore, raises a political as well as economic question: can a government that introduced a universal benefit ahead of an election now persuade affluent beneficiaries to voluntarily relinquish it? Chirag Paswan's backing gives the appeal support from an NDA ally. He has argued that Bihar's development requires stronger revenue sources and described the move as a voluntary contribution to the state's future, rather than a compulsory withdrawal of benefits. The experience of Himachal Pradesh suggests that appeals to affluent consumers can be followed by more formal subsidy rationalisation. Bihar, however, has yet to announce such a change. The larger policy question is whether Bihar will continue to treat free electricity as a universal welfare entitlement or gradually shift towards targeting the subsidy at households that need it most....