Himachal Pradesh is almost wholly mountainous state having altitudes ranging from 350meters to 6,975 with climate conditions varying from semi-tropical to semi-arctic. The total population of Himachal Pradesh as per 2011 census was 68,56,509 with population density being 123 persons per sq. Km. Electric supply at the time of formation of the state in 1948 was available only in the Capitals of the erstwhile princely states and the connected load at the time was less than 500 kW.Thus the organization of the power utility in the state began relatively recently and first electrical division was formed in August,1953 under the Public Works Department. .

Subsequently a department of M.P.P & Power was formed in April, 1964. The Himachal Pradesh State Electricity Board was constituted on 1st September, 1971 in accordance with the provisions of Electricity Supply Act (1948) and has been reorganized as Himachal Pradesh State Electricity Board Ltd. w.e.f. 14.06.2010 under company act 1956.

The Himachal Pradesh State Electricity Board has been re-organized as Himachal Pradesh State Electricity Board Ltd. w.e.f. 14.06.2010 under Company Act.1956.HPSEBL is responsible for the supply of Uninterrupted & Quality power to all consumers in Himachal Pradesh. Power is being supplied through a network of Transmission, Sub-Transmission & Distribution lines laid in the state. Since its inception, Board has made long strides in executing the targets entrusted to it.Himachal Pradesh achieved 100 percent Electrification in to all its census villages in the year 1988. Ensured 24 x 7 uninterrupted Power Supply. Himachal Pradesh has the honor of providing electricity at lowest tariff in the country. Himachal Pradesh achieved unique distinction of 100% metering, billing and collection. Achieved highest household/consumer coverage ratio in the country i.e. about 98% as per REC's survey & they have been adjudged one of the best Board's in the country. Installed and commissioned a power house at the highest altitude in the world (Rongtong Power House at an altitude of approx. 12,000 ft.). Installed and commissioned a totally underground Power House which is unique in Asia (Bhaba Power House 120 MW).