Environment, milk cess adds to power burden

The Himachal Pradesh government has begun collecting milk cess and environment cess from all electricity consumers starting April. These charges are now reflected in the monthly power bills of all categories of users, except those with zero bills.

The Himachal Pradesh Electricity (Duty) Amendment Bill, passed in September 2024 by the state Vidhan Sabha, paved the way for these new charges. According to the official notification, a milk cess of Rs 0.10 per unit is imposed on all consumers. The environment cess, however, varies by category: Rs 0.02 per unit for small industries, Rs 0.04 per unit for medium industries, Rs 0.10 per unit for large industries, Rs 2 per unit for stone crushers, and Rs 6 per unit for EV charging stations.

The move has sparked political backlash. State BJP General Secretary Trilok Kapoor criticized the Congress-led Sukhu government for transferring the financial burden to ordinary citizens. He called the cess on domestic power usage unjust, arguing that larger power consumers should have borne the additional costs. Kapoor also highlighted that the previous BJP government under Jai Ram Thakur had provided 125 units of free electricity to consumers—a subsidy which has now been revoked. Moreover, the current government’s election promise of providing 300 units of free power remains unfulfilled.

He alleged that rather than offering relief, the state government is adding to the financial strain of common people under the guise of a poor fiscal situation. Kapoor pointed out that despite being a power-surplus state, electricity remains costlier in Himachal compared to neighbouring Punjab.

Himachal Tribune