Relief for consumers as cap on subsidised power may be raised

With common man reeling under high electricity tariff, Delhi Chief Minister Sheila Dikshit today indicated raising the current cap on subsidised power that will benefit a large section of consumers but said the affluent may have to shell out more from next month.
Dikshit said Government will make an announcement on providing relief to consumers after Delhi Electricity Regulatory Commission (DERC) announces new tariff next month for the year 2013-14.
"Obviously, certainly (we are going to raise the cap) so that we can cover 60 to 70 per cent of the consumers," Dikshit told PTI when asked whether government was going to raising the cap on extending subsidy.

The Delhi government has been giving subsidy of Rs 1 per unit for last five years to those consumers whose monthly consumption does not exceed 200 units. Currently, around 17 lakh domestic consumers out of 42 lakh consumers are benefiting from the scheme which cost the government nearly Rs 230 crore per annum.
Unfazed by criticism over the steep hike, Dikshit said the tariff is likely to go up for those whose monthly consumption was on the higher side.
"I don't think why people living in posh localities should not pay more. They should, certainly they should, they can afford to," the Chief Minister said, adding that Delhi Electricity Regulatory Commission will come out with new tariff next month.

Dikshit's comments came amid demands by three private discoms to hike the tariff by up to 13 per cent.
Maintaining that tariff fixation was in the domain of DERC, the Chief Minister said it was likely to go up considering rising power purchase cost.