Delhi power bill relief: DERC now favours subsidy over direct benefit transfer

According to Delhi government sources, the power department had written to Sisodia late last year, asking that DBT be adopted. The Chief Secretary had also sent a report to him on the same. Sisodia then wrote to DERC on December 23 to give a fresh opinion on the matter. Referring to the letter written by DERC to the power department in 2018, Sisodia wrote, “I request DERC to examine the issue afresh and give a detailed opinion on the matter.”

The 2018 communication between DERC and the deputy power secretary said DBT should be considered for giving the subsidy for electricity, just like it is given for LPG.

The latest opinion, dated December 24 and signed by DERC chairperson Sahibul Hasnain is against using DBT for the subsidy amount, and states that LPG and power subsidy cannot be equated. “There is no discussion as to how distribution of LPG can be equated with distribution of subsidy in the matter of electricity consumption. It is needless to emphasise that LPG is quantified material, that is, a cylinder, while electricity is free-flowing material. Any consumer/ beneficiary can be given subsidy for the number of cylinders which is a certainty in advance but in electricity, it is unpredictable as to how much energy a consumer will consume in a billing period,” it said.

It also said as per the Electricity Act, 2003, power subsidy has to be paid to the discom in advance and cannot be given as reimbursement, and DBT will be in contravention of the Act.

DERC also said subsidy was being given by the government to ensure electricity in the homes of the poor without interruption or threat of disconnection. “The purpose appears to be targeted use of electricity which opens the door of information/ welfare in every family of the 21st Century. Reimbursement of electricity cannot ensure the amount given to the beneficiary will be used exclusively for the purpose of electricity and will not be used for other purposes by the poor person who has a number of compulsions in his life, like education, medicine, food, etc. There is no way we can ensure subsidy amount in his account will be used by him only for paying electricity bills. In this manner, it may defeat the whole purpose of subsidy under the Electricity Act, 2003,” it said.

Noting that states such as UP, Rajasthan, Haryana and Himachal Pradesh have electricity subsidies but not DBT, the DERC said its suggestion from 2018 is withdrawn.

The AAP government’s subsidy scheme, wherein no bills are generated for those who use less than 200 units of power/month and those using up to 400 units pay 50% capped at Rs 800, was started in 2019. At present, the government’s power subsidy bill is around Rs 3,200 crore/annum.