Kullu-Manali Hoteliers Urge State Government to abolish Electricity Demand Charges Amid Rising Costs.

Shimla:

The hospitality sector in Himachal Pradesh is facing increasing operational challenges due to surging electricity costs, prompting local hoteliers to call for significant policy reforms. Gajender Thakur, President of the Federation of Himachal Hotels & Restaurants, has expressed urgent concerns regarding the financial strain placed on hoteliers by electricity demand charges linked to sanctioned loads.

As electricity prices continue to rise, local businesses find themselves at a disadvantage compared to competitors in neighboring states. Thakur argues that abolishing these demand charges would create a more equitable playing field, enabling local hotels to compete more effectively.

In addition, Thakur advocates for the implementation of energy efficiency programs in hotels, which could lower overall electricity consumption and operational costs. However, he emphasizes the need for state government support, including subsidies, technical assistance, and funding for energy-efficient appliances.

The high operational costs associated with electricity are deterring potential investors from entering the hospitality market in Himachal Pradesh. Thakur underscores the necessity for stakeholders to assess potential returns while developing strategies to mitigate the financial impacts of escalating costs.

With the tourism sector being a crucial pillar of the state’s economy, the Federation is urging the government to reevaluate electricity pricing policies. They believe that addressing these challenges could create a more sustainable and competitive environment for hoteliers and investors.

“As discussions continue, we remain committed to advocating for solutions that support the hospitality industry and promote economic growth in the region,” Thakur stated.