DDU Hospital alone saves ₹24 lakh per year after optimisation
The Himachal Pradesh Government has saved ₹6.72 crore annually by rationalising the electricity Contract Demand (load capacity) of government buildings across the state. The exercise, completed in the first phase, involved optimising 913 government electricity connections across various categories, including agriculture, bulk supply, commercial, Jal Shakti Vibhag, large industrial, non-domestic non-commercial, small industrial and temporary supplies.
According to official data, the total monthly demand charges were reduced from ₹2.05 crore to ₹1.49 crore, resulting in substantial yearly savings to the state exchequer.
For instance, the Deen Dayal Upadhyay (DDU) Hospital in Shimla, which earlier had a contract demand of 1350 kVA, saw its load reduced to 858 kVA, saving nearly ₹24 lakh annually.
A state government spokesperson said that it was observed that many departments were paying higher demand charges than their actual consumption required. Acting on his directions, the Himachal Pradesh State Electricity Board Limited (HPSEBL) undertook an extensive review to align contract demands with the actual load usage of various departmental buildings.
The process, which is typically handled at the electrical sub-division level, was expedited under the supervision of the then Chief Secretary. A series of meetings between HPSEBL and departmental representatives led to a comprehensive state-wide review coordinated by the Chief Electrical Inspector, who compiled a detailed list of all government consumers.
To ensure efficiency, the contract demand for each connection was capped at 10 percent above the maximum recorded demand observed during the previous year, covering both summer and winter peaks. A specially designed Application & Agreement (A&A) form was jointly executed by authorised officials from the government and HPSEBL, enabling the IT Wing of HPSEBL to implement the revised limits.
The A&A forms were finalised in June 2025, and by August 2025, the government had already realised savings of ₹56 lakh in a single month due to the reduced demand charges. These savings are expected to continue accruing every month, strengthening the state’s financial efficiency and setting an example for cost-effective energy management across departments.
