Power ‘shock’ for Himachal domestic consumers as new tariff come into effect from October
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In a move that will have a significant impact on consumers across Himachal Pradesh, the state government has announced the implementation of new electricity tariffs starting from October 1.
The most notable change is the discontinuation of the one rupee electricity subsidy previously granted to industrial consumers, a decision expected to save the state approximately Rs 700 crore annually.
300-unit limit for availing subsidy
Under the new tariff structure, domestic consumers will receive subsidy relief only for consumption up to 300 units. Those consuming less than 300 units of electricity per month will continue to benefit from subsidies ranging from Rs 1.83 to Rs 3.53 per unit, depending on their usage slab.
However, for consumers exceeding the 300 unit threshold, the subsidy of Rs 1.03 per unit has been eliminated, leading to an increase in their electricity cost from Rs 5.22 to Rs 6.25 per unit.
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Hike for commercial consumers too
Industrial consumers, particularly those drawing electricity at a capacity of more than 66 kV, will also experience a tariff hike. These consumers will now be charged between Rs 5.66 and Rs 6.06 per unit, a rise from the previously subsidised rates.
Despite the subsidy cut, officials from the electricity department have assured that even with the revised rates, Himachal Pradesh will still offer cheaper electricity compared to neighbouring states like Punjab, Haryana and Uttarakhand.
The government had previously stopped the one-rupee subsidy for commercial consumers with a supply capacity exceeding 20 KVA. This segment, which includes large businesses, hotels, and malls, will now pay Rs 6.31 per unit for electricity. However, the state government clarified that small shopkeepers and smaller commercial consumers would not be significantly affected by this change.
