50% subsidy up to 400 units power; Discoms to reply today why CAG audit not required
Delivering on yet another poll promise, the Kejriwal Government on Tuesday announced a 50 per cent reduction in power tariff to those consuming up to 400 units of electricity from January 1. The relief will come in the form of subsidy. In another major development, the Delhi Government looks all set to order an audit by the Comptroller and Auditor General (CAG) into the finances of the Capital’s three private power distribution companies, an issue on which the ruling AAP had led street protests in the past.
In order to provide relief to power consumers, the Delhi Government will give a subsidy of `200 crore to discoms. The relief will be available for only three months and it will be subject to review. The power tariff reduction has come with a rider. Those consuming more than 400 units of power will have to pay the full bill at the existing rate.
As per the decision, a subsidy of `1.95 per unit will be provided to those consuming electricity between 0 and 200 units and `2.90 per unit those consuming power between 201 and 400 units. No subsidy will be available to domestic consumers crossing the 400 units limit. According to Kejriwal, the Cabinet decision will give relief to 28 lakh power consumers in the national Capital.
The total consumption of electricity units in this category is 5437 million units annually.The total number of power consumers in Delhi is 34.61 lakh. On the audit into the accounts of the three private power distribution companies, Kejriwal said that the Government had issued show-cause notices to three discoms asking them to submit replies within 24 hours.
He said the Delhi Government is of the view that audit of these companies can be done.But under the provisions of law the three companies were being given the opportunity of being heard on the Government audit of their finances. “They are being given time till tomorrow morning by which they will have to give their representations. The cabinet will meet in the evening,” he told reporters before leaving for his meeting with the CAG.
Out of Rs 200 crore subsidy to discoms, Rs 61 crore will be paid to Tata Power limited, Rs 139 crore will be adjusted against the outstanding dues of over Rs 4,000 crores of two BSES. It would be pertinent to mention that the Delhi Government has been already giving a subsidy of Rs 1.20 per unit to those consuming up to 200 units. For the second slab of 201 to 400 units, the Government had been giving a subsidy of 80 paisa per unit.
After the cabinet decision, there is possibility that BSES may resort to power cut in unauthorised colonies if it was forced to adjust outstanding amount. Questioned about the subsidy that will be available only for three months, Kejriwal said further decision on this would be available only after the audit report.
He said the Cabinet would meet on Wednesday after the three companies submit to the Government their views on the proposal for audit of their finances. “Only after studying their replies we will take a decision whether to audit or not,” he said.
Defying doctor’s advice, an unwell Kejriwal met CAG Shashi Kant Sharma to discuss the issue before going into a cabinet meeting. After the meeting with the CAG, Kejriwal said the official auditor is ready for the job.
The BJP and AAP have been demanding CAG audit of finances of the discoms, alleging huge irregularities by them. However, all the three companies BSES Yamuna Power ltd, BSES Rajdhani Power ltd and Tata Power Delhi Distribution ltd have been opposing it. In July the Delhi Electricity Regulatory Commission (DERC) had also said that there should be a thorough scrutiny of finances of all three companies by the CAG. The BJP has been seeking CAG audit into finances of discoms referring to a DERC proposal in May 2010 to cut the tariff by around 25 per cent citing their healthy financial position.
