The Himachal Pradesh government has imposed an electricity cess of ₹2 per unit on banks, financial institutions and insurance companies operating in the state. The Department of Energy and Multipurpose Projects has issued a notification in this regard, which was published in the official gazette on Thursday, after receiving approval from the Governor.
The cess has been imposed under Section 3B of the Himachal Pradesh Electricity Duty Act, 2009. It will apply to institutions falling under the banking, finance and insurance sectors, which come in the commercial and service category of electricity consumers.
Officials said these institutions have relatively high electricity consumption and are already billed at commercial rates of ₹6.40 per unit. With the addition of a ₹2 per unit cess, their electricity bills will increase further. The Energy Department said the decision was taken to boost state revenue, which will be used for the development of the energy sector and strengthening infrastructure.
According to official data, Himachal Pradesh has 2,372 branches of various banks, apart from their regional, zonal, district and head offices. The number of insurance companies and other financial institutions is also significant across the state. The Energy Department estimates that around 4,000 consumers will come under the purview of this new electricity cess.
The latest decision comes amid an already revised electricity billing structure in the state. From February 2025, a milk and environment cess was added to electricity bills. This led to an increase of 10 paise per unit for domestic consumers, while other categories saw a rise ranging from two paise to ₹6 per unit.
