In a move that could provide significant relief to lakhs of electricity consumers ahead of next year’s Assembly elections, the Himachal Pradesh government is exploring the possibility of reducing electricity tariffs by up to ₹1 per unit. Chief Minister Sukhvinder Singh Sukhu has directed officials to examine the proposal and assess its financial implications for the Himachal Pradesh State Electricity Board.
The proposed reduction is aimed at ensuring that ordinary electricity consumers do not face an additional financial burden even as the government moves towards restricting electricity subsidies to needy and eligible beneficiaries. The government is exploring ways to rationalise electricity tariffs so that the benefits of subsidy reforms do not translate into higher electricity bills for the average household.
A meeting in this regard was held at the State Secretariat on Thursday afternoon under the chairmanship of Chief Minister Sukhu, with senior officials of the Energy Department in attendance. During the meeting, the Chief Minister directed Electricity Board officials to calculate the potential financial losses the Board could incur if electricity tariffs were reduced by up to ₹1 per unit.
The Board has been asked to prepare a detailed proposal outlining the financial implications of the proposed reduction, its impact on revenue and possible mechanisms to compensate for any resulting shortfall. The government will take a final call after examining the proposal and assessing the financial viability of the move.
The proposed relief could benefit consumers across different categories, including domestic, commercial and industrial users. However, whether the reduction will be uniform across all consumer categories or differentiated according to consumption levels and categories will be decided after the proposal is finalised.
At present, domestic electricity consumers in Himachal Pradesh are charged between ₹4.71 and ₹5.89 per unit, depending on their consumption. The tariff stands at ₹4.71 per unit for consumption up to 60 units, ₹5.44 per unit for consumption between 60 and 125 units, and ₹5.89 per unit for consumption exceeding 125 units.
For commercial consumers, the existing electricity tariff ranges between ₹6.11 and ₹6.30 per unit. Small and medium-scale industries are charged up to ₹5.60 per unit, while the tariff for large-scale industries stands at ₹5.85 per unit.
If approved, the proposed reduction of up to ₹1 per unit could translate into substantial savings for consumers and provide relief to households as well as businesses facing rising operational expenses.
The timing of the proposal is also significant, as Himachal Pradesh is scheduled to go to Assembly polls next year. Electricity tariffs and subsidies have traditionally remained important political and public issues in the state, making any proposed revision particularly significant ahead of the elections.
However, the proposal is still at the assessment stage, and the actual extent of relief will depend on the Electricity Board’s financial assessment and the government’s final decision.
