June 25, 2020

The state government has decided to rationalize the subsidy given to the electricity consumers in the State. Currently the government provides subsidy of approximately Rs. 450 crores every year of which only 18 percent goes to 11 lakh consumers using electricity less than 125 units per month while the rest goes to 9 lakh consumers with consumption more than 125 units per month.

In order to rationalize the subsidy pattern across the consumers, the government has ensured that users with low consumption have little or no impact at all on their monthly bills, stated a Government spokesman. So, the subsidy pattern for 11 lakh consumers with usage less than 125 units per month has not been altered at all. He added that almost four lakh consumers with consumption of 125- 200 units per month would have impact of Rs. 40-113 in their monthly bills. Rest of the consumers would have proportionate increase in their monthly bills as per the consumption, he stated.

He said,” it is pertinent to mention that weighted average tariff borne by consumers with consumption of 125-300 units per month in Punjab and Uttarakhand is Rs. 6.59 and Rs. 3.27 per unit while it is only Rs. 2.62 per unit in Himachal Pradesh.” He further stated, that the weighted average tariff borne by consumers with consumption more than 300 units per month in Punjab, Uttarakhand, Haryana and Delhi is Rs. 7.06, Rs. 5.90, Rs. 5.72 and Rs. 6.50 per unit respectively while it is only Rs. 3.93 per unit in Himachal Pradesh. Even with the rationalization, the weighted average tariff in the State will still be lower than the neighbouring States which is Rs. 3.36 per unit.

This step has been taken in order to ensure that the relative benefit of subsidy should reach more to the consumers with low consumption pattern while others should also focus on optimal usage of the electricity. This step will result in saving of around Rs. 100 crores annually to the government which could be better utilized for welfare of people of the State, concluded the spokesperson.


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