Himachal: Electricity board faced criticism from the industry

Himachal Pradesh: The Himachal Pradesh State Electricity Board Limited (HPSEBL) is in trouble over withdrawal of Rs 1 subsidy from large industrial consumers in their power bills issued in October, as the Himachal Pradesh Electricity Regulatory Commission has reversed its order. The subsidy has been withdrawn from October 1 and its effect will be visible in the monthly bills issued in November. Earlier, the state government had said that the effect of the withdrawal of subsidy will be visible in the bills issued in October. Meanwhile, large industrial consumers like the iron and steel industry, who approached the commission for relief, have thwarted the move to earn additional revenue by withdrawing the subsidy. Effective from April 2024, power rates were hiked by a substantial amount of Rs 1 per unit for all categories of consumers except those with less than 50 kW power load, where the hike was Rs 0.75 per unit.
The state government had neutralised this hike by offering a subsidy, but withdrew it in September. The government had said that the next bill would be issued based on the increased rates. However, investors say the new rates without subsidy should be applicable from October 1 and they should get the increased electricity bills in November. Rajiv Aggarwal, president of Baddi-Barotiwala Nalagarh Industries Association, says, “The issue of withdrawal of subsidy by HPSEBL was presented before the Himachal Pradesh Electricity Regulatory Commission, which directed the board to charge the new rates from October 1 instead of September 1. Since the increased electricity bills had already been issued, many industrial consumers paid the bills in protest and the increased amount will be adjusted in the subsequent bills.”
The loss-making power board had increased the tariff by Rs 1 per unit for various consumers this year. The board failed to get the expected compensation from the state government for the losses and its financial condition is deteriorating. An official of the power board says, “The board was forced to withdraw its October 18 order to charge an additional subsidy of Rs 1 from September and now it will be implemented from next month after the regulatory commission’s order.” An official of a key power intensive unit said that an additional Rs 4 crore bill has been sent from various industrial units for September, as the Rs 1 subsidy was prematurely withdrawn in September instead of October. He said that since the bills have been issued, they are considering paying this amount and adjusting it in the next monthly bills.