Delhi govt acts on poll promises

1.8 mn households to get free water

Come next month, the electricity rates for 90 per cent of the households in Delhi will be cut by half, the Aam Aadmi Party (AAP) government announced on Monday. Further, 1.8 million households will get free water supply, provided they have a metered water connection.

"The Delhi cabinet has taken decisions to roll out our poll promises. We have decided to cut the power tariffs (rates) by 50 per cent to all Delhi households that consume electricity up to 400 units. The consumers will be benefited from March 1 till the (ongoing) CAG (Union comptroller and auditor general) audit (of the three private power distribution companies) is complete. I appeal everyone to consume electricity judiciously to avail the benefit," Deputy Chief Minister Manish Sisodia said at a press conference on Wednesday.

The total impact of the two benefits will be around Rs 1,800 crore till the end of 2015-16, the city government said. "This move will benefit 90 per cent of the power consumers in Delhi and 36.64 lakh (3.66 million) families will be benefited beginning March 1," Sisodia said.

With a 50 per cent reduction in rates, households consuming 0-200 units would see their monthly bill coming down by 25 per cent. For the population consuming 200-400 power units a month, the reduction would be 45 per cent. This is because the consumers will have to still pay the full amount in two components of their electricity bills, surcharge and fixed charge.

Those consuming more than 400 units a month will have to pay the entire bill amount. Although 90 per cent of the domestic consumers in Delhi utilise less than 400 units of electricity, they account for only a small part of the earnings of the power companies, industry sources said.

The three distribution companies — BSES Rajdhani Power, BSES Yamuna Power and Tata Power Delhi Distribution — refused to comment on the development. Even if a rate rise is later announced by the Delhi Electricity Regulatory Commission, the city government will continue to provide the relief, government sources said. The government will provide Rs 70 crore as subsidies in March and Rs 1,427 crore will be allocated in the Budget for the next financial year, Sisodia added.  The government will have to shell out subsidies only for the coming financial year as the CAG audit, which the AAP government had ordered in its previous term, will be completed by then, Sisodia said.

The AAP Cabinet approved another major proposal, to provide 20,000 litres of water free per month to every household with a metered connection, a move likely to benefit 1.8 million households.

Sewer charges will also be withdrawn from the water bills. The population consuming more than 20,000 litres of water a month will have to pay the entire bill amount.

According to a Delhi Jal Board official, more than half of the consumers have a metered connection. The government will pay Rs 21 crore in March to facilitate this move and Rs 250 crore for the next financial year. This estimate includes the cost of installing water meters. "This time, housing societies will also be benefited. We will provide metered connections to help more people get this benefit," said Sisodia.