Delhi eyes annual opt-in system for electricity subsidy after four year gap

The previous AAP government's annual model extended existing opt-ins instead of requiring beneficiaries to submit fresh applications.

Delhi’s electricity subsidy scheme may return to an annual opt-in system after a gap of nearly four years, with the government considering a mechanism under which households would have to actively register every year to continue receiving the benefit, officials aware of the matter said on Friday.

A dedicated online portal is also likely to be introduced to facilitate the process of registering for electricity subsidies in Delhi. (Unsplash/Representational)

A dedicated online portal is also likely to be introduced to facilitate the process, with consumers required to renew their choice every year if they want to continue receiving the subsidy, at least two officials said.

“There has been discussion on this. The objective behind thinking about introducing this option is to ensure that only eligible households receive the benefit. There are properties that have been locked and their bills are zero. The government is continuing to pay discoms on their behalf,” said an official, who asked not to be identified.

Government looking at changing ways to access

“The government is also planning to make the process Aadhaar-linked. However, the modalities are still being worked out. The power department is also working on preparing a cabinet note,” another official said.

To be sure, consumers can currently opt out of the subsidy by submitting registration forms through their respective discoms.

AAP government's annual subsidy option

The annual opt-in system was first introduced in October 2022 by the then Aam Aadmi Party (AAP) government, replacing the system under which eligible consumers automatically received the benefit. Under the subsidy structure, households consuming up to 200 units a month receive a 100% subsidy on energy charges, effectively making the bill zero for eligible consumption. Those consuming between 201 and 400 units receive a 50% subsidy. The benefit does not extend to domestic consumption above 400 units.

The 2022 decision, according to officials back then, was intended to ensure that consumers who could afford to pay their bills could voluntarily give up the subsidy, allowing public funds to be directed towards other priorities. Consumers could register through online platforms, WhatsApp, missed calls and QR codes printed on electricity bills.

The exercise initially saw millions of households opting in. By April 2023, around 4.93 million domestic consumers had registered for the subsidy, accounting for 84.1% of domestic electricity connections.

The original system was designed as an annual subscription, with consumers expected to renew their preference before the end of each financial year. However, the government subsequently extended existing opt-ins instead of requiring beneficiaries to submit fresh applications. After the BJP government came to power in 2025, the subsidy continued without consumers having to go through the opt-in process afresh.

To be sure, the financial implications of the scheme are substantial. According to the Economic Survey tabled in the Delhi Assembly in March, the Delhi government had released ₹4,037.63 crore by February 2026 in the 2025-26 financial year.