HPSEBL in financial mess, employees write to CM Sukhvinder Sukhu

Tribune News Service

Shimla, March 28

Claiming that Himachal Pradesh State Electricity Board Limited (HPSEBL) is in a deep financial crisis, the HPSEBL Employee Union has shot off a letter to Chief Minister Sukhvinder Singh Sukhu for immediate remedial measures. The union has claimed that the monthly gap in the receipts and the expenditure of the Board has reached Rs 150 crore, putting a question mark on the sustainability of the board.

Demands of employees

• The decision with regard to Energy Management Centre should be reviewed
• Allocation to Himachal Pradesh State Electricity Board Limitedfrom free power share of the government be continued so that consumers continue to get cheap power
• The revised tariff should either be passed on to the consumers or the government rolls it back to HPSEBL at the start of the financial quarter
• The decision regarding implementation of smart metering be reviewed

The union wrote that this gap was supposed to be met with the revised tariff rates issued by Himachal Pradesh Electricity Regulatory Commission (HPERC) recently but the government has refused to pass on this increased tariff to the consumers and has decided to neutralize the increased tariff through government exchequer. The Union fears that the Himachal Pradesh State Electricity Board Limited will not receive this amount from the government on time, just like the rollback of 125 units free power subsidy amount. “The addition of the increased tariff to the existing free power subsidy will increase the total amount that the government will have to roll back to HPSEBL annually to Rs 2,300 crore. And the delay in the disbursal of this amount will pose a big financial risk to the HPSEBL,” the union wrote in the letter.

Benefits passed on to consumers

The benefits of low purchase price are being passed on to the consumers. Following the government’s decision, the HPSEBL will have to purchase power from open market at higher rates, which will further lead to the financial crunch. —The union wrote

The union claimed that the government was going to discontinue allocation to the HPSEBL from its share of free power from April, 2024. The Union said that the HPSEBL had been purchasing about 600 to 916 million units from government’s share of free power at a tariff decided by the HPERC, which was currently Rs 2.57 per unit. “The benefits of low purchase price are being passed on to the consumers. Following the government’s decision, the HPSEBL will have to purchase power from open market at higher rates, which will further increase the financial crunch,” the union wrote.

The union further claimed that due to the financial crunch in the board, the retirement benefits such as gratuity, leave encashment payment was pending over the last one year in the board. “Presently, the board has a liability of Rs 1,650 Crore towards its employees, power purchase and contractors bills, etc.,” the union wrote.

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