Himachal Pradesh restores power subsidy; big relief to 8 lakh users

April 6, 2026

The Himachal Pradesh government has restored the power subsidy for domestic users consuming between 126 and 300 units per month. The decision is expected to benefit around 8 lakh consumers across the state, while poor families will continue to receive up to 300 units of free electricity, resulting in zero power bills.

Subsidy restored after recent rollback

The state government had earlier withdrawn the subsidy for consumers in the 126–300-unit slab, to higher electricity bills. Meanwhile, the following public concerns and a review at the highest level, government has reinstated that the subsidy of Rs. 1.72/unit.

Officials said the move aims to reduce the financial burden on middle-class households and ensure affordability amid rising living costs. Orders to restore the subsidy were issued immediately after a high-level meeting chaired by the Chief Minister.

8 lakh consumers to benefit

With the restoration, nearly 6 to 8 lakh domestic consumers falling in the 126–300-unit category will directly benefit. The subsidy effectively reduces the payable electricity tariff, making power more affordable for a large section of the population.

Consumers in this slab will now pay significantly less than the actual tariff, whichis around Rs. 5.89/unit.

Free electricity for poor families continues

The government has also continued its flagship scheme of providing free electricity to economically weaker sections. Around 1 lakh poor families will receive up to 300 units of electricity free of cost, resulting in zero electricity bills.

Additionally, households consuming up to 125 units per month will continue to benefit from the zero-bill scheme under existing provisions.

Slab system explained

The electricity tariff structure in Himachal Pradesh is divided into slabs:

This slab-based approach ensures targeted benefits, focusing on low and middle-income groups while limiting subsidies for higher consumption.

Government aims to ease financial burden

Officials stated that the restoration of the subsidy reflects the government’s commitment to public welfare.

The move also balances fiscal considerations with social support, ensuring that subsidies are directed toward those who need them most.