Lakhs of electricity consumers in Himachal Pradesh are set to face higher bills as the state government imposes new cesses on electricity. The hike, which includes a milk cess and an environmental cess, marks the third electricity rate revision in the state this year.
The milk cess, applicable only to domestic consumers, will be charged at 10 paise per unit of electricity consumption. However, households with zero electricity bills will not be affected. Revenue from the milk cess will be used to boost milk production and support milk producers in the state.
Environment Cess Targets Industries and Commercial Sectors
The environmental cess applies to non-domestic consumers, varying across sectors. Small industrial energy units will pay 2 paise per unit, medium industrial units 4 paise, and large industries and the commercial sector 10 paise per unit. Other specific charges include Rs 2 per unit for temporary connections and stone crushers and Rs 6 per unit for electric vehicle charging stations.
The state government’s decision comes after earlier electricity rate hikes in April and September. In April, the new tariff saw rates rise, and in September, the subsidy on electricity up to 300 units was revised. Now, the November increase through additional cesses will further strain consumers.
Consumers and industry representatives have expressed concerns about the cumulative impact of repeated tariff revisions, especially on small businesses and low-income households.
The government has defended the new levies, emphasizing their targeted purposes. The milk cess aims to bolster the state’s dairy sector, while the environmental cess is intended to address pollution and fund sustainable development initiatives.
While the initiatives may have long-term benefits, the immediate burden on consumers has sparked debates about the state’s approach to balancing development goals with public affordability.
