Cabinet Sub-Committee Recommends Restructuring Himachal Electricity Board for Better Services; Electricity Board to Focus on Domestic Consumers; New Entity for Industries Planned
Shimla – Himachal Pradesh is set to restructure its power sector with the proposed dissolution of the Himachal Pradesh State Electricity Board (HPSEB) after 14 years. A cabinet sub-committee has recommended the creation of a new electricity company exclusively for industries to address rising electricity costs and improve services. The proposal, based on an analysis of the board’s expenditure and income, will be presented for approval in the upcoming state cabinet meeting.
The restructuring plan envisions a separation of responsibilities. While the electricity board will continue to manage domestic and non-industrial consumers, the new entity will cater exclusively to the power needs of industries. It will oversee the distribution, billing, and related services for industrial power supply.
Addressing Industrial Challenges
Himachal’s industrial power tariffs are among the highest in the region, prompting concerns from industries about their viability. Reports suggest some units are exploring relocation or alternative power sources from private electricity providers. The state government has imposed restrictions on such purchases to ensure stability within the sector.
“The creation of a dedicated company aims to resolve industry-specific concerns, especially the high tariffs while maintaining the board’s focus on domestic services,” a senior official said.
This isn’t the first time Himachal Pradesh is restructuring its electricity board. In 2010, the HPSEB was divided into the Transmission Corporation and Power Corporation, both of which have demonstrated improved performance. The government is optimistic that this new initiative will similarly boost efficiency and cater to the distinct needs of industries.
Competent officers from the electricity board will be deputed to the new company, which will independently decide on staffing and operations. The company’s establishment is expected to enhance service delivery and prevent industries from seeking alternatives.
Addressing these systemic issues, the state aims to balance retaining industrial growth with maintaining a robust electricity board for other consumers.
