Power subsidy approved, will cover 28 lakh consumers

Per unit rate between 201 and 400 units will be Rs 5.15 as against Rs 5.95 per unit as announced by the DERC earlier.

By: Express News Service | New Delhi | Published:September 4, 2014 3:02 am

Lieutenant-Governor Najeeb Jung on Wednesday approved power subsidy of up to Rs 1.20 per unit, a move expected to benefit nearly 84 per cent or 28 lakh consumers in the city.

Principal Secretary (Power) Arun Goel said the subsidy will be effective retrospectively from August 11, when the Delhi Budget was approved by the BJP government at the Centre. With the city under President’s rule, the subsidy was announced by Union Finance Minister Arun Jaitley, while presenting the Delhi Budget in Parliament on July 18.

The monthly subsidy will be Rs 1.20 per unit for consumption up to 200 units and Rs 0.80 for consumption between 201 and 400 units. The government will have to incur an additional expenditure of Rs 260 crore up to March 31, 2015, on account of the subsidy.

Goel said all the private power distribution companies have been directed to implement the subsidy scheme with immediate effect.

In July, the power tariff in the city was hiked by up to 7.5 per cent for domestic consumers. Though the rates were increased, regulator Delhi Electricity Regulatory Commission (DERC) had said the bills of consumers whose monthly consumption did not exceed 800 units would actually go down as the Power Purchase Adjustment Cost (PPAC) surcharge of 6-8 per cent was withdrawn for the next three months.

After the current subsidy is effected, the per unit rate for consumption up to 200 units will come down from the Rs 4 to Rs 2.80.

The per unit rate between 201 and 400 units will be Rs 5.15 as against Rs 5.95 per unit as announced by the DERC earlier.

The regulator had increased the per unit rate of domestic power in the 0-200 units slab from Rs 3.90 to Rs 4 and in the 201-400 slab, it was hiked to Rs 5.95 from 5.80.

The Sheila Dikshit government had introduced the subsidy of Rs 1 per unit for consumption between 0 and 200 units and between 200 and 400 units five years ago. Later, while keeping their pre-poll promise, the AAP government had provided 50 per cent subsidy on electricity consumption of up to 400 units. The subsidy scheme had lapsed on March 31.

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