Himachal regulatory panel hikes power rates by Rs 1 per unit

Shimla, March 15

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has increased energy charges by around Re 1 per unit for all categories of consumers, except for small and medium industries (SMEs) for financial year 2024-25. The tariff for small and medium industries has been increased by 75 paise per unit. However, the increased tariff will not be passed on to consumers in all categories as the government will neutralise it by providing additional subsidy to Himachal Pradesh State Electricity Board Limited (HPSEBL).

No increase in charges

• As per the tariff order issued by the HPERC, there has been no increase in the fixed/ demand charges to be paid by the consumers
• The commission has estimated HPSEBL’s Annual Revenue Requirement (ARR) at Rs 8,111 crore for 2024-25 after truing up uncontrollable parameters for financial year 2022-23.
• The commission has estimated the average cost of supply for the HPSEBL after truing up at Rs 6.79 per unit for 2024-25.

As per the tariff order issued by the HPERC, there has been no increase in the fixed/ demand charges to be paid by the consumers. The commission has estimated HPSEBL’s Annual Revenue Requirement (ARR) at Rs 8,111 crore for 2024-25 after truing up uncontrollable parameters for financial year 2022-23. The commission has estimated the average cost of supply for the HPSEBL after truing up at Rs 6.79 per unit for 2024-25.

For small and medium enterprises the tariff has been hiked by 75 paise per unit. The commission opined that the growth of the small and medium enterprises was important for the overall employment generation in the state and for the long-term sustainability of the HPSEBL. “Keeping this into consideration, the commission has increased the tariff for SMEs by only 75 paise per unit instead of Re 1 per unit for other categories of consumers,” it noted.

Further, the commission has decided to continue with 15 per cent rebate being provided to industrial consumers for 2024-25 as well.

Additionally, the commission has allowed 15 per cent rebate on additional energy consumption over and above that of maximum of the yearly consumption of the past three financial years for industries having operation for more than three years in the state.