Shimla: The Himachal Pradesh government has decided to continue providing free electricity to domestic consumers using up to 125 units per month, but has withdrawn the subsidy for households consuming more than 300 units. The move is expected to benefit over 22 lakh domestic consumers while increasing the cost burden on high-usage households.
Ending speculation over the continuation of power subsidies, the state government has released fresh subsidy rates aligned with the 15 paise per unit reduction announced earlier by the HPSEB. The new rates and subsidy structure have been implemented from April 1, 2025, and will apply for the entire 2025–26 financial year.
While consumers using 0–125 units will continue to get power free of cost, those consuming between 126 and 300 units will pay a subsidised rate of Rs 4.17 per unit after a subsidy of Rs 1.73. However, consumers using over 300 units will no longer receive the earlier subsidy of Rs 1 per unit and will now have to pay the full tariff of Rs 5.90 per unit. Bills for April, to be issued in May, will reflect these new rates.
Energy Secretary Rakesh Kanwar has sent a formal letter regarding the revised subsidy to the Managing Director of the Himachal Pradesh State Electricity Board, Sandeep Kumar.
The updated domestic tariff structure is as follows:
| Slab (Units) | Tariff per Unit | Subsidy | Effective Rate |
|---|---|---|---|
| 0–60 | Rs 4.72 | Nil | Rs 4.72 |
| 0–125 | Rs 5.45 | Nil | Rs 5.45 |
| 126–300 | Rs 5.90 | Rs 1.73 | Rs 4.17 |
| Above 300 | Rs 5.90 | Nil | Rs 5.90 |
The HPSEB had announced a reduction of 15 paise per unit for domestic consumers, 12 paise for commercial consumers, and 20 paise for small and medium industries. However, there has been no change in the fixed demand charges. Rates applicable in 2024–25 will remain in force for 2025–26.
Officials from the Energy Department have indicated that similar subsidies for agricultural and commercial consumers will also be announced soon. A formal notification in this regard is expected within the next few days.
