Himachal Pradesh has high altitude ranging from 350 to 6975 meters with climate conditions varying from semi-tropical to semi-arctic. The total population of Himachal Pradesh as per 2001 census was 61,77,248 with population density being 93 persons per sq. Km. However, there are wide variations in area and population figures of the districts and district-wise density varies from 2 persons per sq. km. in Lahaul Spiti to 330 persons.
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 after realizing the need for exploiting the substantial hydel potential available in the river basins. Thereafter, the State Electricity Board in accordance with the provisions of Electricity Supply Act (1948) was formed in the year 1971. Accordingly , all functions of the Department of Multipurpose projects, Power such as generation, execution of hydro electric projects except functions of flood control and minor irrigation were transferred to the Board. Since then the State Electricity Board has made long strides in executing the targets entrusted to it and at present is fully competent in organization and infrastructure to take up any challenges.