Shimla: The Himachal Pradesh government has moved to curb the misuse of electricity subsidies by limiting benefits to a maximum of two meters per household. Consumers with more than two electricity connections will no longer receive any subsidy on the third meter and will have to pay the full bill based on actual consumption.
The decision comes amid concerns that several households in urban areas were availing subsidies on multiple connections, thereby increasing the financial burden on the state exchequer. At present, electricity consumption up to 125 units per month is provided free of cost on each individual connection. This allowed consumers with multiple meters to draw higher cumulative benefits, a practice the government now aims to restrict.
Under the revised policy, while the first two meters will continue to receive subsidy benefits, any additional connections will be billed without concessions. For consumption between 126 and 300 units, the existing tariff is ₹5.89 per unit, on which the government currently provides a subsidy of ₹1.73 per unit. However, this relief will not apply to the third or any subsequent meter.
The move is part of a broader effort by the state government to rationalise subsidies and manage its strained financial condition. Officials believe that restricting benefits to two connections will ensure that subsidies reach genuine beneficiaries while plugging loopholes that allowed excessive claims.
Alongside this, the government has also tightened norms for consumers living in buildings constructed without approved plans. Such consumers, particularly in urban areas, will now be billed at the highest domestic tariff slab if they fail to produce a No Objection Certificate (NOC) from municipal bodies, further signalling stricter enforcement of regulations.
Data shared by the government shows that 29,344 consumers in the state have voluntarily given up electricity subsidies so far. These include 13,668 government employees, 11,364 pensioners, and 4,312 general consumers.
The decision is expected to have a significant impact in towns like Shimla, where multiple electricity connections within a single household are common. The government maintains that the step is necessary to ensure fair distribution of subsidies and to reduce financial stress, while also encouraging responsible consumption of electricity.
