Chief Minister Arvind Kejriwal on Thursday announced that all consumers in Delhi will be given a choice to opt-out of electricity subsidy or continue getting free electricity from October 1.
Addressing a digital press conference, Kejriwal said, “We get appreciation for Delhi Government’s free electricity scheme from all sections of the society. But, over the years, people have suggested that instead of providing subsidies to financially strong households, the money be used for schools & hospitals.
Taking their demand into consideration, all consumers will be given a choice to opt-out from the subsidy or continue getting free electricity from October 1.”
“On the basis of the choices registered, we will provide free electricity to those families who wish to seek the benefit of the scheme,” the Delhi Chief Minister said.
Notably, the Delhi Cabinet approved the continuation of the free electricity scheme today wherein, 47,11,176 families are to benefit from the subsidy. Lakhs of families bearing the brunt of the rising inflation following the pandemic will greatly benefit from the scheme.
Today, a cabinet meeting was held at the Delhi Secretariat, presided over by the Delhi Chief Minister.
The continuation of the government’s electricity subsidy scheme was proposed during the cabinet meeting.
According to the resolution proposed by the power department, the Delhi Government provides subsidies to domestic consumers, farmers, and lawyers’ chambers in courts based on their consumption, which was proposed to be extended further.
The cabinet deliberated on this and approved the proposal to continue the electricity subsidy scheme in the current fiscal year 2022-23 to provide some relief to people suffering from inflation following the pandemic.
Kejriwal said, “A major decision taken by the Cabinet concerning the power sector of Delhi today. Most people living in Delhi avail a free supply of electricity, for which the Delhi Government provides subsidies. Over the years, the government has received many suggestions through letters as well as in-person interactions with us – wherein people have appreciated the free electricity policy as a noble step, but they have also acknowledged their privilege and the fact that some financially stable citizens and families do not have a need for these subsidies.
In the recent past, a huge number of people have come forward and suggested that instead of giving this subsidy to them for electricity, the public funds’ money be put towards upgrading schools and hospitals even more.”
He concluded, “As a result, we have decided to give a choice to the people of Delhi when it comes to availing free electricity supply. We will now be asking Delhi’s residents whether or not they require the subsidy, and accordingly provide a free supply of electricity to those in need. The process of asking and giving the people a choice to opt for subsidised or non-subsidised electricity will begin very soon. Following this procedure, only those people who opt for the subsidy will be provided with it starting on 1st October 2022.”
There are 58,18,231 electricity consumer connections in Delhi. The Delhi Government provides subsidies in electricity to five broad categories of consumers. This includes Domestic consumers, Anti-Sikh Riot Victims, Agricultural consumers, and Lawyers whose chambers are within the court complex. The number of subsidised connections totals up to 47,16,075 consumers across the state.
Domestic consumers get subsidies in two forms: first, those consumers who use up to 200 units a month are given 100 percent subsidy – there are 30,39,766 such consumers at the moment. The second category is of those consumers who use 201-400 units, who are given up to Rs 800 in subsidy — There are 16,59,976 such consumers.
There are 758 families in Delhi availing of this subsidy. This includes a 100 percent subsidy for consumers who use up to 400 units per month including fixed charges, surcharges, taxes, etc. Those consumers who use more than 400 units under this category only have to pay for their usage above 400 units. The charges of up to 400 units are subsidised by the government.
The farmers of Delhi are provided subsidised electricity for the upkeep of their fields. Under this scheme, 125 subsidised units on their connection along with a comprehensive subsidy of Rs 105 per kW per month on the fixed charges. There are 10,676 consumers availing of the benefit of this scheme.
A total of 4,899 consumers avail the benefit of the subsidy in this category where lawyers whose chambers are within the court get subsidised tariffs. Consumers who use up to 200 units get a 100 percent subsidy, consumers who use up to 400 units get a subsidy up to Rs 800 and their tariff gets subsidised from non-domestic tariff to domestic tariff. Similarly, those consumers who use over 400 units get their tariffs subsidies to domestic tariffs too.