The Himachal Pradesh Government has achieved an annual saving of ₹6.72 crore by rationalising the Contract Demand (Load Capacity) of electricity connections in various government buildings across the State. Implemented in the first phase, this initiative covered 913 government connections across categories such as agriculture, bulk supply, commercial, Jal Shakti Vibhag, industrial, and non-domestic supplies. The move successfully reduced total monthly demand charges from ₹2.05 crore to ₹1.49 crore, resulting in substantial annual savings to the State exchequer.
As a key example, the Deen Dayal Upadhyay Hospital, Shimla, saw its contract demand lowered from 1350 kVA to 858 kVA, generating savings of about ₹24 lakh per year.
A state government spokesperson stated that Chief Minister Thakur Sukhvinder Singh Sukhu had observed that several departments were paying significantly higher demand charges compared to their actual consumption. Acting on his directions, the HP State Electricity Board Ltd. (HPSEBL) carried out a detailed review to align each department’s contract demand with its actual load requirement.
Under the Chief Minister’s supervision, and with the guidance of the then Chief Secretary, a state-wide audit and rationalisation process was expedited. Meetings between HPSEBL officials and departmental representatives were held to assess real-time consumption patterns. The Chief Electrical Inspector coordinated the review and compiled a list of all government consumers.
To ensure efficiency, each electricity connection’s contract demand was capped at 10 percent above the highest recorded usage in the previous year, accounting for both summer and winter peaks. Special Application & Agreement (A&A) forms were jointly finalised by authorised government and HPSEBL officials, enabling the IT Wing to implement the revised demand limits.
By August 2025, the initiative had already resulted in savings of ₹56 lakh in a single month, confirming its long-term fiscal impact.
Chief Minister Sukhu praised the initiative as a model for cost efficiency and energy management, reiterating the government’s commitment to extend similar rationalisation drives across other departments to curb wasteful expenditure and strengthen financial discipline in the State.
Nurturing Creativity – Keekli Charitable Trust, Shimla
