Delhi Govt Likely to Remove Subsidy on Electricity Bills for Selected Consumers

The Delhi government is considering the possibility of eliminating the subsidy on energy bills for specific user groups. The subsidy option may be eliminated for customers who have energy connections with loads of more than three kilowatts, according to a recent report.

Delhi's Energy Department is currently drafting a proposal in this respect, which will then be sent to the Delhi Cabinet for approval.

The Delhi Electricity Regulatory Commission (DERC) has recommended taking into account consumption-based power subsidies, according to the sources in the Delhi government. The Commission has requested that links with a load of more than three kilowatts be exempt from this regulation by the Energy Department.

Only 10 to 15 per cent of electricity consumers will reportedly be impacted by the implementation of this method. A sizable portion will still be able to choose to receive energy subsidies. In Delhi, electricity subsidies are currently only accessible upon request.

Over 40.28 lakh customers in the national capital have registered for energy subsidies so far, though there is no set date for when this application procedure will begin for the upcoming fiscal year 2023–2024. A decision on this will be made shortly by the Energy Department, as per a recent official release.

At the moment, Delhi pays nothing for energy used between 0 and 200 units. At the same time, the subsidy is unaffected by the load on the energy connection.