Delhi electricity subsidy halves year-on-year to ₹1,644 crore

In 2019-20, the government had released ₹2,405.59 crore for power subsidy, which increased to ₹2,939.99 crore in 2020-21

There has been a sharp fall in power subsidy released by the Delhi government, the 2022-23 Economic Survey showed on Monday. It fell to ₹1,644.50 crore in 2022-23 up to February, compared with ₹3,250 crore in 2021-22, the survey said.

The expenditure in the energy sector in 2021-22 was the highest in the past decade, with ₹3274.32 crore or 10.79% of the total expenditure incurred being utilised for the subsidy scheme. (HT ARCHIVE)

In 2019-20, the government had released ₹2,405.59 crore for power subsidy, which increased to ₹2,939.99 crore in 2020-21.

The decline could be attributed to the government shifting to a new electricity subsidy scheme in 2022-23 financial year, which placed the onus on consumers to avail the subsidy. From March 1, 2015, the Delhi government had implemented a 100% subsidy scheme on the existing tariff for domestic consumers using up to 200 units per month, while it was 50% for those using up to 400 units.

In 2022-23, this scheme was amended with the Voluntary Subsidy Scheme from October 1, where consumers have to opt-in for the subsidy.

The expenditure in the energy sector in 2021-22 was the highest in the past decade, with ₹3274.32 crore or 10.79% of the total expenditure incurred being utilised for the subsidy scheme. This, too, could be one of the factors behind the switch in subsidy schemes.

In 2021-22, there were a total of 6.64 million electricity connections in Delhi, out of which 5.55 million were domestic connections, the survey said. Among these, around 4.77 million got subsidy. Domestic connections are expected to increase to 5.8 million in the year to March 31.

“The priority in the energy sector in Delhi is mainly to maintain uninterrupted power supply and to take care of the increasing power demand. Electricity prices have not been increased in Delhi since 2015,” the survey said. “At present, there are about 4.77 million (more than 86.71% of the total domestic electricity consumers) households in Delhi who are getting electricity subsidy as compared to 2015.”

The government subsidizes electricity tariff for domestic consumers, farmers, and lawyer chambers within the premises of court complexes, and also provides a special subsidy to 1984 Sikh riot victims.

A total of 37,460 million units of power were purchased in 2021-22, out of which 16.65% was sourced from the generation of power plants under the Delhi government, while 83.34% was purchased from the central government and other sources, the survey said.

Delhi had a solar capacity of 244 MW through installations at 6,864 locations till September, it noted. The renewable energy capacity of Delhi was 300 MW, if waste-to-energy plants are also counted.