New Electricity Tariff Rates in Delhi announced by Arvind Kejriwal Govt

Arvind Kejriwal after coming in power started fulfilling his promises and one of the most important promise was curtailment of electricity bills. Effective from 1st January 2014 new elecricity tariff will be applicale in Delhi. Here you can see the new tariff and can compare with the old one and the conditions which will be applicable to avail new and reduced electricity rates in Delhi. Arvind Kejriwal is on his way and within 3 days of his Governance he came out to fulfill his second promist that is curtailment of elecricity bills for people of Delhi by 50%. However this curtailment is limited to those using 400 units in a month. The new rate will be effective from 1st January 2014 to 31st March 2014 after that it will be reviewed after CAG audit is done.

New electricity tariff rate in Delhi comparing current Rates

As per his promise Arvind Kejriwal and AAP government announced new electricity tariff rate curtailing 50% for uses of less than 400 units per month. The new rates is as follows.

From 0 – 200 units 1.95 Rs per unit, current rate is 3.90 Rs per unit.
From 201 – 400 units 2.95 Rs per unit, current rate is 5.80 Rs.
From 401 – 800 units 6.80 Rs per unit which is same as current rate, and
From 801 and above 7.00 Rs per unit and this is also at par with current rate

At present the the subsidy cost to Government comes out to be around 570 crores which may increase by 200 crores after implementing these rates. In Delhi total consumers is about 34 lakhs in which about 28 lkahs are expected to be the beneficiaries of these subsidy.

Impact on Delhi economy of reducing Delhi electricity rates

It should be noted that the new reduced elecricity rate is applicable from 1st January 2014 to 31st March 2014, till then it is expected that CAG audit will be done and the rates will be reviewed again. There are different views for this curtailment of electricity bills upto 400 unit slabs. Arvind Kejriwal stated that in this 3 months Government will bear additional 200 crore subsidy however the actual subsidy which Government will have to bear will be only 61 crores and rest will be adjusted against Rs 4000 crores which is to be paid by BSES discoms to Delhi Government generation and transmission Companies.
However Industry experts opines completely different, according to them the Government will be under tremendous pressure as there is already a 570 crores subsidy load on 0-400 unit slab and further addition will lead to a total of 1400 crores subsidy load which may be unbearable for the Government. Further BSEB discoms had already said earlier that they are not in position to clear 4000 crores outstanding, that means 139 crores which is expected to be paid by them will not stand.

Whatever may be the situation, there is win win situation for the time being for both Arvind Kejriwal Government and the public of Delhi and the later will be paying 50% less electricity bills upto 400 units and th former if survives may find out the way after CAG audit or if Congress withdraws support in between then they can again go the to public keeping their heads high to ask for votes again.