Relief reversed: Power subsidy for 125-300 unit slab withdrawn in Himachal

The state government has withdrawn the power subsidy for domestic consumers in the 125–300 unit consumption slab for the current financial year, leading to a significant increase in electricity bills for a large section of households.

With the withdrawal of the Rs 1.73 per unit subsidy that was available in this slab last year, consumers will now pay Rs 5.89 per unit, compared to Rs 4.17 earlier. Although the Himachal Pradesh Electricity Regulatory Commission has reduced the power tariff by one paise per unit for 2026-27, the benefit has been offset by the subsidy withdrawal, effectively increasing the burden on consumers by Rs 1.72 per unit beyond 125 units.

For consumers using more than 125 units per month, the first 125 units will continue to be billed at an effective rate of Rs 2.07 per unit, with the government providing a subsidy of Rs 3.37 per unit. As in previous years, households consuming up to 125 units per month will continue to receive zero bills.

The subsidy amount will be reimbursed by the government to the Himachal Pradesh State Electricity Board Limited. However, consumers will now be able to avail the subsidy on only two electricity meters during the financial year.

According to sources in the board, nearly six lakh out of the state’s approximately 24 lakh domestic consumers are expected to be impacted by the withdrawal of the subsidy in the 125-300 unit slab. “Earlier, there were three consumption categories — up to 125 units, 125-300 units and above 300 units. With the removal of subsidy in the middle slab, there are effectively only two categories now — up to 125 units and above 125 units,” a source said.

The sources added that households consuming up to 300 units are likely to see an increase of around Rs 300 in their monthly electricity bills due to the policy change.

Meanwhile, the government has approved full subsidy for the poorest one lakh families, who will continue to receive zero bills for consumption of up to 300 units on a single meter. The list of beneficiaries will be shared with the electricity board for implementation of the scheme.