Before the assembly elections to be held in Himachal Pradesh next year, the government has started preparations to provide major relief to electricity consumers. A proposal is being prepared to reduce electricity rates in the state by one rupee per unit. Chief Minister Sukhwinder Singh Sukhu has instructed the officials of the Energy Department and Electricity Board to explore possibilities in this direction and make detailed financial assessments. However, this proposal is still at an initial stage and the final decision will be taken after assessing the financial condition of the Electricity Board and the government.
On Thursday, a meeting was held with Energy Department officials at the Secretariat under the chairmanship of Chief Minister Sukhwinder Singh Sukhu. Electricity rates and subsidy system were discussed in the meeting. The Chief Minister directed the officials to make a full assessment of the financial loss that may occur to Himachal Pradesh State Electricity Board Limited if electricity rates are reduced by Re 1 per unit.
The government has asked the Electricity Board to prepare a detailed proposal in this regard. It will also have to be made clear as to how much the Board's revenue will decrease after the tariff reduction and how this financial difference can be compensated. The government is trying to strike a balance between the financial condition of the electricity board and the relief to consumers before taking any decision.
Efforts to provide relief to common consumers amid changes in subsidy
An important aspect of this proposal is the possible change in the electricity subsidy system. The government intends to limit the benefits of electricity subsidy only to needy and eligible consumers. But due to the change in this system, the option of reducing the tariff is being explored to ensure that ordinary consumers do not have to bear additional burden on electricity bills. That is, on one hand the government is working towards rationalizing the scope of subsidy, while on the other hand it is also exploring the possibilities of providing relief to consumers by reducing the basic rates of electricity.
If the proposal is approved, apart from domestic consumers, commercial and industrial categories may also benefit. However, whether there will be uniform deduction for all categories or relief will be decided according to different categories, it is not clear yet.
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These are the current rates for domestic consumers
Presently in Himachal Pradesh, different rates are fixed for domestic electricity consumers depending on the consumption.
- Rs 4.71 per unit on power consumption from 0 to 60 units.
- Rs 5.44 per unit from 60 to 125 units.
- Rs 5.89 per unit on consumption above 125 units.
At the same time, electricity rates for commercial consumers range from Rs 6.11 to Rs 6.30 per unit. The tariff is fixed at Rs 5.60 per unit for small and medium industries and Rs 5.85 per unit for large industries. If these rates are reduced by one rupee per unit, then there can be a significant reduction in the monthly bills of the consumers as per the electricity consumption. Especially domestic and commercial consumers who consume more electricity can get direct benefits from it.
Electricity rates were not increased even this year
The state government had not allowed increase in electricity rates during the financial year 2026-27. The State Electricity Regulatory Commission had reduced the average power supply cost by one paisa per unit for all categories of consumers. The Commission had fixed the average supply cost of the Electricity Board at Rs 6.75 per unit for FY 2026-27 as against Rs 6.76 per unit for FY 2025-26.
On the instructions of the Chief Minister, the Electricity Board had presented the proposal to the Commission not to increase the rates. This has provided relief to about 28 lakh electricity consumers of the state. Like before, the facility of 125 units of free electricity continues to be provided to domestic consumers. Earlier, in the year 2025, domestic electricity tariffs were reduced by up to 15 paise per unit.
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Government's focus on electricity rates before elections
Assembly elections are proposed in Himachal Pradesh next year. In such a situation, possible reduction in electricity rates is being considered important from both political and economic point of view. Electricity subsidy and free electricity facility in the state have been a subject of political debate for a long time. Now the government is facing a double challenge. On one hand, the financial position of the electricity board has to be strengthened and on the other hand, consumers have to be given relief from expensive electricity.
A possible reduction in electricity rates by up to one rupee is being seen as an attempt to strike this balance. However, for now consumers will have to wait for this proposal to be implemented. Only after receiving the report and financial assessment of the Electricity Board, the government will decide how much rate reduction is possible and which categories will be given its benefit.
At present, there is no announcement of relief, but the effort to find a way for relief has started. Only the final decision of the government will decide how much the bills of electricity consumers of Himachal will actually be reduced next year.