AAP government slashes power tariff by 50 per cent, announces free water

New Delhi: Fulfilling two major poll promises, the AAP government on Wednesday announced a 50 per cent subsidy on monthly power consumption of up to 400 units and 20,000 litres of free water per month to all households that would cost the exchequer around Rs 1,670 crore annually.

The free water scheme and power subsidy will come into effect from March 1. The decision on both the schemes was taken at a Cabinet meeting presided over by Chief Minister Arvind Kejriwal.

"We delivered on our promises on slashing power tariff by half and giving free water. We will also fulfil other promises," Kejriwal said.

Deputy Chief Minister Manish Sisodia, addressing a press conference, said all the consumers whose monthly power consumption do not exceed 400 units will get 50 per cent subsidy in tariff and the scheme will benefit around 36 lakh or 90 per cent of the consumers.

However, the rider is that if consumption crosses 400 units, then full charges from zero base will have to be paid.

Earlier, the Chief Minister had met Comptroller and Auditor General Shashi Kant Sharma and discussed the status of scrutiny of finances of the private power distribution companies by the auditor, which was ordered by the AAP government in its first stint.

Sisodia said the subsidy scheme will be reviewed after the CAG submits its report on the finances of the discoms.

On the water scheme, Sisodia said 20,000 litres of free water will be supplied to all households having functional water metres and the decision will benefit around 18 lakh families.

However, if the monthly consumption exceeds 20,000 litres then charges for entire supply of water will have to be paid.

Both 50 per cent subsidy and free-water schemes were launched during AAP's first government but were discontinued after it quit on February 14 last year.

The Deputy Chief Minister said the free water is being extended to group housing societies as well and all the consumers under the scheme will not require to pay any other charges including the sewerage charge.

In the free water scheme announced by the first AAP government, the group housing societies were kept out.

The power subsidy scheme will cost the government Rs 70 crore for the month of March and a total of Rs 1427 crore for the next financial year.

Sisodia said relief in electricity bills will continue even in the eventuality of any tariff hike by Delhi Electricity Regulatory Commission.

For the water scheme, Rs 20 crore will be required for March and a total of Rs 250 crore has been set aside for 2015-16. This estimate includes the cost of installing more meters to allow more people to get the benefit of piped water.

The benefit of the water scheme will be made available to the consumers having metered connection.

"We do not make false promises. That is why today we decided to provide major relief to the citizens of Delhi. We have delivered on the promises," Sisodia said.

Cutting power tariff and providing free water were major election promises of AAP, which had won a whopping 67 out of 70 seats in the assembly polls earlier this month.

Officials said per unit of power from 0-200 slab will cost Rs 2 per unit while it will be Rs 2.97 per unit in the 201-400 slab. The rate for 401-800 slab will remain at Rs 7.30 per unit.

The city has seen a series of hike in power tariff in the past few years.

The tariff was hiked by 22 per cent in 2011 followed by five per cent hike in February 2012. The tariff was increased by up to two per cent in May 2012 year and again by 26 per cent for domestic consumers in July 2012.

It was hiked by up to three per cent in February 2013 and again by five per cent in August last year. It was again enhanced up to seven per cent in November last year.

Attacking the BJP, Sisodia said the the ruling party at the Centre did not show any interest in solving problems faced by people of Delhi during President's Rule.

"Today is an important day for the aam aadmi (common man). We are happy to announce that as promised, we are slashing rates of electricity by half and will provide free water," he said.