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Himachal hikes power cost, imposes ₹ 1 per unit cess

As per a notification issued by the Energy Department, the new cess has come into effect immediately. It will apply to 10 categories connected with commercial and business activities.

News Arena Network - Shimla - UPDATED: May 15, 2026, 08:06 PM - 2 min read

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The Himachal Pradesh government has introduced a new electricity cess for several commercial power consumers in the state. An extra charge of ₹1 per unit has been added to electricity use.

 

As per a notification issued by the Energy Department, the new cess has come into effect immediately. It will apply to 10 categories connected with commercial and business activities.

 

The Himachal Pradesh State Electricity Board Limited will collect the extra levy under the Himachal Pradesh Electricity Duty Act, 2009. The government said it was done in public interest and to strengthen the power sector.

 

The new cess will apply to business establishments, private offices, hotels, motels, petrol pumps, private hospitals, nursing homes, research institutes, coaching centres, shopping malls and multiplexes.

 

The new cess is the latest in a series of additional charges on electricity introduced over the past year. In February 2025, the government had brought in milk and environmental cess on power bills, increasing tariffs for many consumer groups.

 

Earlier, domestic consumers were asked to pay a milk cess, while commercial and other users had to pay an environmental cess. Domestic users with zero bills were exempted from the milk cess.

 

In December 2025, an extra Rs 2 per unit cess was imposed on institutions connected with banking, finance and insurance sectors.

 

Reacting to the move, BJP MLA and former Urban Development Minister Sudhir Sharma said the state government is increasing the burden on people and businesses through repeated cesses and tariff hikes. He also said the new electricity cess reflects the government’s economic policies and administrative shortcomings.

 

Also read: Over 900 sanitation workers go on indefinite strike in Shimla

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