Shimla
The process of determining new electricity tariffs in Himachal Pradesh has entered its final stage. Public hearings before the Himachal Pradesh Electricity Regulatory Commission have been completed, and the commission is currently reviewing suggestions, objections and data submitted by the state electricity board. The new tariff is expected to be announced by the end of March and will be implemented from the new financial year.
The state electricity board, in its tariff petition for the upcoming financial year, has proposed a hike in power rates. It has cited a continuous rise in power purchase costs, especially during winters when electricity has to be procured to meet demand despite the state being a major hydropower producer. The board has also pointed to increased expenses on transmission, maintenance, salaries, pensions and administrative costs.
To bridge the gap between expenditure and revenue, the board estimates that a hike of 25 paise per unit is required, though it has formally proposed an increase of up to 10 paise per unit to the commission. The regulator will also assess the additional burden on consumers and examine whether relief can be provided to certain categories.
During public hearings held in Shimla, Baddi and Dharamshala in February, domestic consumers, industry bodies, hoteliers and farmer representatives presented their views. Consumer groups suggested reducing line losses and curbing power theft to minimize the need for tariff hikes.
With lakhs of domestic, commercial and industrial consumers affected, all eyes are now on the commission’s final decision.
