Shimla – In a significant policy shift, the Himachal Pradesh government has decided to discontinue electricity subsidies for most consumers in the state, resulting in annual savings of over Rs 1500 crore. According to the new regulations, only specific categories such as BPL (Below Poverty Line), IRDP (Integrated Rural Development Programme), and Antyodaya consumers will continue to receive subsidized electricity.
Effective from the next billing cycle, all other electricity consumers will pay Rs 5.60 per unit for the first 125 units of electricity consumed. Previously, the government had provided free electricity for usage of up to 125 units. However, this benefit will no longer be available, leading to increased electricity bills for around 18 to 20 lakh consumers across the state.
The Sukhu government approved the decision in a recent cabinet meeting. While the official notification is awaited, sources confirm that the approved proposal stipulates that each consumer will receive the subsidy only on one electricity meter, irrespective of the number of meters registered in their name. For any additional meters, the tariff determined by the regulatory commission will apply.
The government anticipates saving over Rs 1500 crore annually by limiting the electricity subsidy to one meter per consumer. This move will ease the financial burden on the state, which previously covered the cost of subsidies amounting to Rs 5.60 per unit for the first 125 units, Rs 1.83 per unit for usage between 126 to 300 units, and Rs 1.30 per unit for consumption beyond 300 units.
While the Himachal Pradesh State Electricity Board will not directly benefit from this decision, the significant savings in subsidy expenditure will bolster the state’s finances. A survey of electricity meters will be conducted to accurately assess the financial impact of this policy change.
This decision marks a major shift in the state’s approach to electricity subsidies, aiming to streamline benefits and reduce fiscal pressure. Consumers are advised to prepare for higher electricity bills as the new rates take effect in the coming months.
