Delhi government weighs curbs on free electricity for dormant consumers

The Delhi government is exploring the option of restricting electricity subsidies for “dormant” consumers or households that record zero power consumption for months because the premises remain locked.

Under the current policy, domestic consumers using up to 200 units per month receive a 100% subsidy, including fixed electricity charges and as a result, even households with no usage continue to get zero bills, with the government paying fixed charges of around ₹100–₹150 per month.

Also Read: India fully geared to meet coal demand surge amid Iran‑Israel war energy concerns


Officials estimate that about 4 lakh consumers in the city, which include largely residents who stay outstation or abroad for long periods, fall into this category. The exchequer ends up spending roughly ₹50–₹60 crore annually on electricity charges for such households.

A government official said the issue was flagged by the Comptroller and Auditor General (CAG), prompting the administration to review whether subsidies should continue for consumers who remain inactive for extended periods.

The official added that the government may consider allowing the subsidy to resume once such consumers become active again and begin recording electricity usage.

Free power scheme to continue

Officials said the move should not be seen as an attempt to scale back Delhi’s free power subsidy scheme. “The government has already clarified that the free schemes will continue and provisions have been made in the budget for power subsidies,” the official said.

Under the scheme, households consuming up to 200 units per month pay no electricity charges, while those using between 201 and 400 units receive a 50% subsidy capped at ₹800. Consumers exceeding 400 units do not receive any subsidy.

Government data shows that around 44.5 lakh households were in the zero-bill category in March 2025, slightly higher than a year earlier. Across the city’s three power distribution companies, the average monthly number of zero-bill consumers rose from about 27.3 lakh in 2024 to nearly 29 lakh in 2025.

Also Read: India's February power demand hits 15-year high amid rising temperatures: Crisil

The subsidy is funded directly by the Delhi government, which reimburses distribution companies — BSES Rajdhani Power Limited, BSES Yamuna Power Limited and Tata Power Delhi Distribution Limited — for the discounted portion of tariffs.

The fiscal burden of the scheme has risen steadily as electricity connections in the capital have grown. In the 2025–26 Delhi budget, the government allocated ₹3,600 crore for power subsidies.

Ahead of the 2025 assembly elections, the BJP had promised to continue all existing free schemes in the city — a commitment it retained after coming to power.

(With inputs from TOI)