Himachal Power Board Faces Backlash Over Premature Subsidy Withdrawal for Industries

ENA State 2024-12-02 15:43:04 Shimla, Dec 2 (KNN) The Himachal Pradesh State Electricity Board Limited (HPSEBL) is embroiled in a dispute following the premature withdrawal of the Re 1 per unit electricity subsidy for large industrial consumers. The subsidy, initially set to be removed starting October 1, was instead withdrawn from September 1, leading to significant financial implications for industrial units and public backlash. In October, the HP Electricity Regulatory Commission reversed HPSEBL's decision, directing that the hiked tariff without the subsidy should apply only from October 1. However, large industrial consumers, including energy-intensive sectors like iron and steel, had already received and, in some cases, paid inflated September bills under protest. Rajiv Aggarwal, president of the Baddi-Barotiwala Nalagarh Industries Association, stated that the excess charges would now be adjusted in future bills. The situation stems from an April 2024 power tariff hike that increased rates by Re 1 per unit for most categories, except for consumers with a load below 50 KW, who faced a lesser hike of Rs 0.75 per unit. To mitigate the impact, the state government provided subsidies but rescinded them in September. This decision created confusion among stakeholders regarding implementation timelines. Industrial consumers criticised the boards financial management, highlighting that approximately Rs 4 crore was prematurely billed for September across various units. We are evaluating options to pay the amount under protest and seek adjustments in subsequent bills, said a representative from a major power-intensive unit. Facing mounting losses, HPSEBL argued it had no choice but to enforce the tariff hike. An official disclosed that the board had failed to secure adequate compensation from the state government for operational deficits, exacerbating its financial woes. Consequently, on October 18, HPSEBL revoked its decision to apply the subsidy withdrawal retroactively, complying with the regulatory commission's order. This ongoing tussle underscores the challenges in balancing the financial stability of public utilities and protecting industrial investments in the state. The adjustments are expected to be reflected in November bills, leaving stakeholders awaiting resolution. (KNN Bureau) 40110 https://knnindia.co.in/news/newsdetails/state/himachal-power-board-faces-backlash-over-premature-subsidy-withdrawal-for-industries 2024-12-02 15:43:04 knnindia.co.in Himachal Power Board Faces Backlash Over Premature Subsidy Withdrawal for Industries