Cabinet approves power subsidy to below-400 units consumers

A day after BJP virtually launched its poll campaign by promising to reduce power tariff by 30 per cent, Delhi Government today approved subsidy for domestic consumers whose monthly consumption does not exceed 400 units, which in effect will bring down the bill of low-end customers.
The proposal to provide the subsidy was cleared by a meeting of Delhi Cabinet presided over by Chief Minister Sheila Dikshit.
Dikshit had announced the subsidy on July 26 when Delhi Electricity Regulatory Commission had announced a hike of five per cent for domestic consumers.
Considering the subsidy, a domestic consumer will be charged Rs 2.70 per unit for first 200 units of power instead of Rs 3.90 as announced by Delhi Electricity Regulatory Commission last month.

"The government has neutralised the hike in tariff by giving subsidy to the tune of Rs 1.20 for consumption up to 200 units," officials said.
Earlier, the per unit rate for consumption upto 200 units was Rs 3.70 and government used to give a subsidy of Rs 1 per unit which had brought down the rate to Rs 2.70.

The per unit rate will be Rs 5 against earlier rate Rs 5.50 for consumption between 201 and 400 units as the government decided to give a subsidy of Rs 80 paisa per unit for the slab.
"For the second slab of 201 to 400 units subsidy will be Rs 0.80 per unit. As a result the tariff will come down to Rs 5 which is lower than the current rate of Rs 5.50 per unit," said the officials.

The rate will be Rs 6.80 for consumption between 401 units and 800 units and for consumption beyond 800 units, the per unit rate will be Rs 7 per unit.
The BJP has been attacking the Delhi Government for a "series of hike" in power tariff in the last two years and promised to cut it by 30 per cent if it comes to power in the assembly polls slated for November.
Rejecting BJP's criticism, Dikshit has accused BJP of "misleading" the people to gain political mileage.
"Power tariff will not be an issue as power bills are going to come down," said a senior Minister.

The power tariff in the city was hiked by 22 per cent in 2011 followed by five per cent hike in February last year. The tariff was hiked by up to two per cent in May last year and again by 26 per cent for domestic consumers in July last year. The tariff was hiked by up to three per cent in February.