Shimla:
Bowing to public sentiment, the Himachal Pradesh government has decided to continue providing 125 units of electricity free of cost to domestic consumers each month.
The decision puts an end to speculation over the possible withdrawal of this benefit for low-consumption households. Around 22 lakh domestic consumers will continue to receive the power subsidy, with the government also announcing revised subsidy rates aligned with the recent tariff adjustments made by the State Electricity Regulatory Commission.
The commission had earlier reduced power tariffs by 15 paise per unit. Following this, the government has adjusted the subsidy amounts accordingly, ensuring that the power rates for consumers remain consistent with those applicable in the 2024–25 fiscal year.
High-consumption users hit by subsidy withdrawal
While small consumers received relief, households consuming over 300 units per month have been dealt a blow.
The government has withdrawn the existing subsidy of ₹1 per unit for this category. As a result, these consumers will now pay ₹5.90 per unit, with bills for April—set to be issued in May—reflecting the updated rates.
Energy Secretary Rakesh Kanwar has communicated the revised subsidy structure to Sandeep Kumar, Managing Director of the State Electricity Board.
Although the Commission had released the revised tariffs on March 28, those did not initially account for subsidy provisions.
Tariff reduction across categories
Electricity rates in the state have been reduced by 12 to 20 paise per unit across various consumer categories.
Domestic users benefit from a 15 paise per unit reduction, while commercial users see a cut of 12 paise. Small, medium and large industrial units will enjoy a 20 paise per unit relief. However, there has been no change in the fixed demand charges, which will remain as they were during the 2024–25 fiscal.
Agriculture and commercial users to get subsidy too
Like domestic consumers, agricultural and commercial users will also continue to receive subsidised electricity. Although no formal order has been issued yet, Energy Department officials have indicated that a notification in this regard will be released within a couple of days.
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