Sunday Edition

Kejri's vow to fall flat, relief in power tariff only up to 35%: Experts

Sweta Goswami

While the national Capital is buzzing with Delhi Chief Minister Arvind Kejriwal’s announcement of ‘50 per cent cut’ in power tariffs, experts have warned Delhiites not to be under the perception that their bills would be slashed by half. At the hindsight, they say, the maximum relief given to the consumer will be up to 35 per cent only.

People who consume up to 200 units of electricity will now have to shell out 20 to 22 per cent lesser while paying their bills. The new subsidy scheme is set to benefit the most to those domestic users who consume power between 201 to 400 units. People coming under the second slab will be at the receiving end of maximum reduction in their power bill as they would now have to pay 35 per cent lesser than the current amount. “It is important to note that the Government has given a 50 per cent subsidy to people consuming up to 400 units of electricity. This does not mean that power bills paid by consumers will witness a reduction of 50 per cent. The subsidy will be levied on per unit electricity or energy charge after which surcharge, fixed charges and taxes are added,” said a government official.

Until December last year, consumers falling under the 0-200 slab had to pay Rs 686.6 (includes subsidy of Rs 1.2 given by Sheila Dikshit government). Now, after Kejriwal’s 50 per cent subsidy, they will have to pay Rs 536.6 on their electricity usage. Similarly, those consuming between 201 to 400 units will now be paying Rs 1,204 against the earlier bill of Rs 1,851. “A surcharge of eight per cent is charged on each bill which is meant to balance the long-standing deficit in the power sector of the city. Apart from this, people also have to pay five per cent as tax and then there are fixed charges. So the bills will see a reduction of nearly Rs 150 and Rs 647 for the two slabs,” added another official.

Experts have also said while the subsidy is indirectly the money returned to the taxpayers of the Capital, the finances of private discoms are in no way going to be affected by this move.