Power subsidy indecision proving costly for users

NEW DELHI: Delhi government on Monday remained non-committal on the matter of extending Rs 200 crore subsidy for power consumers. This subsidy expired on May 31. With the first billing cycle this month reflecting no subsidy, consumers are now paying 10% more for power.

People consuming up to 150 units also do not yet have the benefit of the Rs 1/unit subsidy though an announcement for the extension of this subsidy was made by the chief minister in June this year.

Power secretary Rajender Kumar said: ������The extension of Rs 200 crore subsidy is still under consideration and a decision will be made on this shortly. While the government has extended subsidy for those who consume up to 150 units, it has to come to the cabinet and then a communication needs to be passed on to DERC. So, its implementation is taking some time.������

The power secretary added that once DERC receives a communication in this regard, adjustments would be made in future billing. ������If we decide to make the subsidy effective from June 1, then future bills will credit the extra amount that consumers had already paid,������ Kumar said.

The two subsidies ended on May 31. The larger subsidy, where a decision is still awaited, benefited all categories of consumers. Lack of this subsidy has resulted in an increase of about 5-10% in tariff. The other subsidy benefited those who consume less than 150 units during non-peak demand months.

The limit is up to 200 units in peak-demand months. While power regulator DERC in its latest tariff order decided against any tariff hike for 2009-10, certain categories of consumers are already paying more due to lack the subsidy. The subsidy was initiated to offset a 10% tariff hike that sparked public protest against discoms and government.