Himachal’s new electricity rates: Milk and Environmental cess added

Electricity bills in Himachal Pradesh are set to rise yet again as the state government introduces two new cesses – a milk cess and an environmental cess. This marks the third revision in electricity tariffs this year, adding to the financial strain on consumers.

Milk Cess: Boosting Dairy Sector but Impacting Households

The milk cess, targeting domestic electricity consumers, will be levied at 10 paise per unit of power consumed. However, households with zero electricity bills are exempt from this charge. Revenue generated from this cess will be allocated to support milk production and assist dairy farmers across the state.

Environmental Cess: Industries and Commercial Users Hit Hard

The environmental cess applies to non-domestic consumers, with rates varying by sector. Small industrial units will pay 2 paise per unit, medium units 4 paise, and large industries, along with commercial establishments, will be charged 10 paise per unit. Specific rates include Rs 2 per unit for temporary connections and stone crushers and Rs 6 per unit for electric vehicle charging stations.

A Year of Tariff Hikes: Strain on Consumers

This latest hike follows earlier revisions in April and September. In April, electricity tariffs increased, while in September, subsidies on consumption up to 300 units were revised. Now, the November additions are stirring concerns among consumers and small businesses already grappling with rising costs.

Mixed Reactions: Development Goals vs. Affordability

The state government has justified the new levies, highlighting their purpose. The milk cess is intended to strengthen the dairy sector, while the environmental cess aims to combat pollution and promote sustainable development.

While these initiatives may have long-term benefits, critics argue that the repeated tariff hikes disproportionately burden low-income households and small enterprises. The debate continues as stakeholders question the government’s strategy to balance development with public affordability.