Shimla — In a decisive move to address the financial challenges facing Himachal Pradesh, the Sukhu government has announced the end of electricity subsidies for commercial consumers. This significant policy change is part of the government’s ongoing efforts to reduce the state’s growing debt, which currently stands at a staggering ₹86,584.9 crores.
The government has decided to withdraw the one-rupee-per-unit electricity subsidy that was previously extended to consumers engaged in commercial activities. As a result, commercial users with meters exceeding five kilowatts of capacity will now be charged ₹6.52 per unit for electricity. This increase in rates is expected to impact large businesses, including hotels, malls, and other substantial commercial enterprises. However, most small shopkeepers will not be affected by this change.
While the subsidy removal targets commercial consumers, the government has assured that domestic, industrial, and agricultural consumers will continue to receive relief through the existing subsidy on electricity rates. This decision has been made to protect smaller consumers from the financial burden while addressing the more significant fiscal issues of the state.
The Power Secretary has issued a letter to the State Electricity Regulatory Commission, requesting the revision of electricity rates to reflect the removal of the subsidy. The withdrawal of the one-rupee subsidy also extends to various other sectors, including irrigation, drinking water schemes, street lights, temporary supply, electric vehicle (EV) charging stations, railways, and non-domestic and non-commercial consumers.
Chief Minister Sukhvinder Singh Sukhu justified the decision, stating that the subsidy was initially provided to support the power sector, particularly for the benefit of hotels and similar businesses. However, in light of the state’s deteriorating financial situation, the government has decided that these subsidies are no longer sustainable and must be withdrawn to improve fiscal health.
As the state grapples with its mounting debt, the Sukhu government’s decision underscores the difficult choices it faces in balancing fiscal responsibility with economic growth. The impact on the commercial sector, particularly in the hospitality industry, will be closely watched as businesses adjust to the new, higher electricity costs.
