 "Electricity, power, discoms")
Shortly after Chief Minister Ashok Gehlot announced a top-up to his electricity subsidy for Rajasthan, the opposition Bharatiya Janata Party (BJP) criticised the move, claiming it was a pre-election stunt and that the government had not yet paid distribution companies (discoms) a large outstanding amount against the subsidy that had already been given to consumers.
Following the Aam Aadmi Party (AAP) in Delhi, subsidies on power consumption are now offered by various state governments in terms of units (in kWh, ie kilo-watt-hour) consumed.
Delhi
Electricity is free for consumers who use up to 200 units per month in Delhi. For consumers who use between 201 and 400 units per month, there is a 50 per cent subsidy, capped at Rs 850. Consumers must apply for the subsidy to receive it. The government renews the subsidy on an annual basis. Consumers who use more than 400 units per month must pay the full amount at the applicable slab rate. For example, if a consumer's bill is 401 units, they will pay the full amount for the 401-600 unit slab.
Rajasthan
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The Gehlot government, which was already offering 50 free units to all consumers, has announced that from now on, it will give the first 100 units free to all consumers per month. The permanent fee, fuel surcharge, and other fees for all consumers consuming up to 200 units would also be waived.
Punjab
After cutting tariffs across various categories of consumers, the Punjab government has offered consumers free power up to 300 units a month, with the condition that a full bill will be charged if bimonthly consumption exceeds 600 units.
Chattisgarh
The Bhupesh Baghel government currently waives off half the bill of domestic consumers using less than 400 units per month under its “Half Electricity Bill Scheme”.
Karnataka
The newly elected Siddaramaiah government in Karnataka has announced that it will provide 200 units of free electricity per month to domestic households, including tenants, starting July 1. The amount of free electricity will be based on the user's consumption pattern in the last 12 months.
Himachal Pradesh
The Congress government in Himachal Pradesh, which won the recent state elections, has decided not to raise power tariffs. They claim that this is an overall subsidy for all consumers, as the rise in water cess will be offset by the lower electricity costs. The government is also continuing with the full subsidy for consumers who use less than 125 units of electricity per month. For consumers who use more than 125 units of electricity per month, the charges will be activated in slabs.
Non-BJP, non-Congress opposition-run states
When it comes to non-BJP, non-Congress Opposition-run states, few offer waivers to domestic consumers, and those that do, give lesser subsidies than the AAP or Congress governments.
In Bihar, the Nitish Kumar government has increased the overall subsidy by nearly 50 per cent, but there is no per-household subsidy.
The Trinamool government in West Bengal announced a free electricity policy in its 2020-21 budget, but it is only for those who consume up to 75 units of electricity per quarter.
In Jharkhand, the Hemant Soren government offers up to 100 units of free electricity per month to financially weaker sections. There is an overall subsidy for distribution companies given by the Odisha government, but there is no subsidy for individual domestic consumers. However, there are some incentives for agriculture.
The DMK government in Tamil Nadu has recently renewed its policy of providing free electricity to households and weavers for the first 100 units consumed per month. This policy was previously withdrawn in 2019 due to financial constraints.
The Andhra Pradesh government provides nine hours of free power daily to industries, agriculture, and aqua farmers. In addition, it provides slab-wise subsidies for SC, ST, MBC, and general category domestic consumers.
The Telangana government provides an overall subsidy to distribution companies and subsidies for agriculture, but does not provide any household subsidy.
BJP-run states
The majority of BJP-run state governments do not provide subsidies to domestic consumers in the power sector. However, the Shivraj Singh Chouhan government in Madhya Pradesh is an exception. It offers a subsidy of 84 per cent on the first 100 units of electricity consumed per month, which means that domestic consumers in Madhya Pradesh only pay Rs. 100 per month for the first 100 units of electricity they consume, instead of the usual rate of Rs. 643.
Maharashtra gives a 50 per cent subsidy if consumers use less than 100 units of consumption, which is lower when compared to most non-BJP-run states.
