Power subsidy is latest flashpoint between LG and Delhi govt as former orders enquiry into flagship scheme

After recommending a CBI investigation into the now-abandoned liquor policy of the Delhi government, the secretariat of Lieutenant Governor (L-G) Vinai Kumar Saxena has instructed the Chief Secretary to conduct an inquiry into the electricity subsidy program—a flagship scheme of the government. The L-G secretariat has sought a report within seven days, raising concerns about the alleged non-compliance with a 2018 order from the Delhi Electricity Regulatory Commission (DERC) regarding the payment of electricity subsidies through Direct Benefit Transfer (DBT).

The communication between DERC and the deputy power secretary indicated that the DERC Executive Director (Tariff) proposed considering DBT for electricity subsidies, similar to the model for LPG subsidies. This suggestion aimed to eliminate the need for auditing Distribution Companies (DISCOMs) regarding claimed subsidies. The inquiry follows a complaint highlighting improprieties and discrepancies in the power subsidy matter, lodged by a group of legal professionals.

The power subsidy scheme, initiated in 2019, exempted users consuming less than 200 units per month from electricity bills, while those using up to 400 units paid a capped 50%, up to Rs 800. The complaint alleged that the government favored DISCOMs, settling their outstanding dues of Rs 21,250 crore through future subsidy reimbursements, resulting in a sum of Rs 11,550 crore. Furthermore, it claimed that DISCOMs were permitted to charge consumers an 18% Late Payment Surcharge while paying the Delhi Government-owned Power Generation Companies a 12% rate.

Recently, the Delhi government made power subsidies optional, allowing users to opt in by submitting a form either online or in person. The subsidy issue has gained attention, with Chief Minister Arvind Kejriwal defending the initiative against opposition claims from Gujarat, asserting that he will not allow anyone to impede Delhi residents from receiving free electricity.