Post subsidy withdrawal, power board faces industry backlash
HP State Electricity Board Limited (HPSEBL) is in a bind over the withdrawal of Re 1 subsidy from large industrial consumers in their electricity bills issued in October as the HP Electricity Regulatory Commission has reversed its orders.
The subsidy has been withdrawn from October 1 and its implication will be seen in the monthly bills issued in November. Earlier, the state government had stated that the implication of the subsidy withdrawal would be seen in the bills issued in October. Meanwhile, large industrial consumers like iron and steel industries, which had approached the commission for relief, have thwarted the move to earn extra revenue by withdrawing the subsidy.
Effective from April 2024, the increase in the power tariff was quite high at the rate of Re 1 per unit for all category of consumers except for those with power load of less than 50 KW, where the increase was Re 0.75 per unit.
The state government had neutralised this increase by offering subsidy but withdrew it in September. The government had stated that the next bill would be issued on the basis of the hiked tariff. The investors, however, opined that the new tariff minus the subsidy was to be implemented from October 1 and they should get the hiked power bill in November.
“The issue of subsidy withdrawal by the HPSEBL was presented before the HP Electricity Regulatory Commission, which directed the board to charge the new tariff from October 1 instead from September 1. Since the hiked power bills had already been issued, several industrial consumers had paid the bills under protest and the increased amount would be adjusted in the subsequent bills,” says Rajiv Aggarwal, president, Baddi-Barotiwala Nalagarh Industries Association.
Facing losses, the power board had increased the tariff by Re 1 per unit for various consumers this year. The board failed to get the requisite compensation from the state government for losses and its financial condition was worsening. “The board was forced to withdraw the orders on October 18 for charging additional subsidy of Re 1 from September and it would now be implemented from next month following the order of the regulatory commission,” says an official of the power board.
An official of an important power intensive unit says that additional Rs 4 crore has been billed from various industrial units for September after the Re 1 subsidy was withdrawn prematurely in September instead of in October. He adds since the bills have been issued, they are contemplating to pay the amount and get it adjusted in subsequent monthly bills.
