Delhi's electricity tariffs likely to rise, says power minister Ashish Sood

BJP minister Ashish Sood said that the power distribution companies (Discoms) have been authorised to raise tariffs to recover the outstanding amount.

Delhi power minister Ashish Sood on Monday warned that the electricity rates in the national capital could rise soon as the discoms were authorised to raise tariffs.

Delhi power minister Ashish Sood was responding to a question in Delhi Assembly.(DIP)

The BJP minister, while responding to a question in the assembly, cited a significant ₹27,000 crore debt left by the previous Aam Aadmi Party government as the reason behind the potential hike.

"In the coming time, electricity prices will rise, and perhaps some people even want this for their political gains. However, the government remains in touch with DERC and is closely monitoring the situation," Sood added.

BJP minister explains what will cause the electricity rate hike in Delhi

According to Sood, this debt, accumulated through the Delhi Electricity Regulatory Commission (DERC), is now burdening the power distribution companies (Discoms), which have been authorized to raise tariffs to recover the outstanding amount.

"The previous government has left a debt of ₹27 thousand crores of regulatory assets with the discoms through DERC. To recover this, the companies are authorised to increase the electricity rates. During the tenure of the previous government, on the orders of the High Court, DERC was ordered to bring tariff orders," the minister said.

The warning about rising electricity prices comes at a time when the Delhi government is also facing other economic pressures, including the pre-poll promises made by the BJP, such as the promised ₹2,500 financial aid for women.

Former Delhi chief minister and AAP leader Atishi on Monday criticised the BJP-led central government, alleging that the promised ₹2,500 financial assistance for women had not been delivered and expressed hope that the ruling party would fulfil its commitments during the Budget Session.

Delhi assembly budget session begins

Meanwhile, Delhi Chief Minister Rekha Gupta on Monday prepared the ceremonial 'Kheer' ahead of the inaugural budget session of the newly elected government in the Delhi Legislative Assembly.

Marking a unique start to the financial proceedings, the newly elected Chief Minister extended her gratitude to those involved in the budget-making process.