The cut in subsidy will affect both industrial and domestic consumers, though domestic consumers will continue to get some relief. As per the new rates, domestic consumers using up to 300 units of electricity per month will still get the benefit of subsidy ranging between Rs 1.83 and Rs 3.53 per unit, depending on their consumption slab. However, consumers using more than 300 units of electricity will no longer get the subsidy of Rs 1.03 per unit and will instead have to pay a charge of Rs 6.25 per unit instead of Rs 5.22.
Industrial power consumers will also see a change in their bills. Consumers receiving power at a capacity of more than 66 kV will now be charged between Rs 5.66 and Rs 6.06 per unit. This follows the government’s earlier decision to discontinue the one rupee subsidy for commercial consumers using capacity above 20 kVA. Such consumers will now be billed at Rs 6.31 per unit. However, small shopkeepers have been largely exempted from these changes, as their power usage generally remains below the new limit.
Despite the removal of the subsidy, officials have assured that power prices in Himachal Pradesh will remain competitive compared to neighbouring states such as Punjab, Haryana and Uttarakhand. The state’s energy department highlighted that, while industries and large businesses will feel the impact of the subsidy cuts, these changes are part of the government’s strategy to strengthen Himachal’s financial position.
To balance the effects of the subsidy removal, the government has introduced significant relief measures for small and medium-sized industries. Power tariff for small industries has been reduced from 11 per cent to a mere 3 per cent, while for medium industries it has been reduced from 17 per cent to 10.5 per cent. Large industries, barring cement plants and stone crushers, will benefit from a reduction in power tariff from 19 per cent to 16.5 per cent.
This dual approach is aimed at easing the financial pressure on small and medium enterprises (SMEs), while maintaining fiscal responsibility. However, the subsidy cuts will impact large businesses, including hotels, malls and major industrial operations, which will have to face higher power rates.
The decision to stop the one rupee subsidy was formally informed in a letter written by the state’s energy secretary to the State Electricity Regulatory Commission. Officials said that by saving crores of rupees in subsidy payments, the government can allocate more resources to infrastructure and other important projects, thereby boosting the state’s economic growth.
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