7 lakh people may be affected if Delhi govt sets 3KW cap on power subsidy

Officials clarified that this would help the government save approximately Rs 300 crore and the government can utilise the savings in subsidy for funding pension trust liability and a corresponding reduction of pension trust surcharge may be passed on to all electricity consumers.

“The power department is currently facing difficulty in paying pension trust liability and it asked for suggestions on how this can be managed. Following their request, the DERC submitted its recommendations to the government to set a cap on subsidy. Currently, consumers with a sanctioned load of 3KW get subsidised bills in large numbers. Consumers using above 3 KW, are fewer in numbers and several of them have opted out of the subsidy scheme. The DERC has sent its suggestions, now it’s up to the government if they want to implement it or not,” said a government source.

However, if the government goes ahead with the DERC recommendations from the next fiscal year, according to government data, 13% of consumers who are eligible for availing of power subsidy may get affected and not get the subsidy, even if they apply for the voluntary subsidy scheme.

Delhi has a total of 58.28 lakh eligible consumers. As per the sanctioned load, 49.5 lakh consumers, which amounts to 86%, fall under the 1-3 KW bracket, 2.94 lakh (5%) fall in 4-5 KW bracket and about 4.6 lakh (8%) fall in over 5-KW category.

Further, about 48,14,319 consumers have opted for the subsidy. The Delhi government, in September 2022, made it mandatory for people to opt-in for the subsidy to continue getting benefits.

Meanwhile, in 2021-22, about 55 lakh people got the benefits and subsidised bills during non-peak months when the electricity consumption was low as compared to peak summer and winter.

The scheme will now end on March 31 and people will have to opt for the subsidy again in April.”The DERC’s recommendation will soon be moved forward to the cabinet for approval,” said an official.

Power Minister Atishi, in a recent interview with The Indian Express had said, “They get multiple such policy proposals from the departments. But, as of now, no change was being planned in the current power subsidy model, where people opt for it if they want it.”

People receive a 100% subsidy for consuming less than 200 units and a 50% subsidy of up to Rs 800 for consuming up to 400 units.