Home/ News / India/  Delhi govt may remove subsidy on electricity bill for certain consumers. Details here

The Delhi government is looking into the option of removing the subsidy on electricity bills for certain categories of users. This move may pinch the pocket of Delhiites a bit more if implemented. According to a report by the Hindi daily Hindustan, the subsidy option may be removed for consumers who are having electricity connections with a load of more than three kilowatts. 

The Energy Department of the Delhi Government is preparing a proposal in this regard and after that the proposal will be sent to the cabinet of the Delhi government for approval.

According to a senior Delhi government official, the Delhi Electricity Regulatory Commission (DERC) has suggested considering consumption-based power subsidy. The Commission has asked the Energy Department to keep connections with a load of more than three kilowatts out of this purview.

Officials say that if this system is implemented, only 10-15 percent of electricity consumers will be affected. A large section will continue to have the option of getting electricity subsidies. At present electricity subsidy is available in Delhi only on demand. The Delhi government has made this arrangement from October 1, 2022.

So far more than 40.28 lakh consumers have registered for electricity subsidy. The date of when this application process will start for the next financial year 2023-24 is not fixed. The Energy Department will take a decision on this soon.

At present Delhi gets zero bill on consumption of electricity up to 0-200 units. At the same time, the load of the electricity connection has no effect on the subsidy.

If the power consumption is within 400 units, then the consumer gets 50% subsidy on the bill subject to a maximum of 800. As soon as 401 units are consumed, the consumer is out of the purview of subsidy. There are about 58 lakh electricity consumers in Delhi, of which more than 47 lakh are domestic.

In winter, more than 85 percent of consumers get the benefit of subsidy.

The Delhi government had made a provision of 3250 crore for electricity subsidy in the financial year 2022-23.

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Updated: 03 Mar 2023, 01:59 PM IST
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