The Himachal Pradesh Government has achieved an annual saving of Rs 6.72 crore by rationalising the contract demand (load capacity) of electricity connections provided to various government buildings across the state in the first phase.
A total of 913 government electricity connections, covering categories such as agriculture, bulk supply, commercial supply, Jal Shakti Vibhag, large industrial supply, non-domestic non-commercial, small industrial and temporary supply, were optimised, reducing total demand charges from Rs 2.05 crore to Rs 1.49 crore per month. This will result in substantial annual savings to the state exchequer.
A state government spokesperson said that Chief Minister Sukhvinder Singh Sukhu observed that many departments were paying higher demand charges compared to their actual consumption. Acting on his directions, the HP State Electricity Board Ltd. (HPSEBL) carried out an extensive exercise to realign contract demand with the actual load capacity of departmental buildings.
“For instance, the Deen Dayal Upadhyay Hospital, Shimla, earlier had a contract demand of 1350 kVA, which was brought down to 858 kVA, saving about Rs 24 lakh per annum,” he said citing an example. As per the Chief Minister’s instructions, the process, normally carried out at the electrical sub-division level, was expedited. A series of meetings between the HPSEBL and departmental representatives led to a one-time, state-wide review coordinated by the Chief Electrical Inspector, who compiled a list of all government consumers.
The contract demand for each connection was capped at 10 per cent above the maximum recorded demand observed during the previous year, accounting for both summer and winter peaks. A specially designed Application & Agreement (A&A) form was then jointly executed by authorised government and HPSEBL officials, enabling the IT Wing of HPSEBL to implement the revised limits.
The Chief Minister has lauded this initiative and reaffirmed the state government’s commitment to undertake similar rationalisation exercises across other sectors to reduce unnecessary expenditure and ensure prudent financial management.
Unlock Exclusive Insights with The Tribune Premium
Take your experience further with Premium access.
Thought-provoking Opinions, Expert Analysis, In-depth Insights and other Member Only Benefits
Already a Member? Sign In Now



