Delhi's electricity subsidy bill is projected to touch a record high in 2025-26, with the total expenditure expected to cross Rs 4,000 crore, government sources told the Times of India.
In the current financial year, the Delhi government earmarked Rs 3,849 crore for the subsidy-around Rs 250 crore more than the amount spent in 2024-25.
The power department has now sought an additional Rs 361 crore through the revised budget to clear pending subsidy dues, the Times of India reports. Officials said the request reflects a steady increase in the number of beneficiaries under the free electricity scheme, along with accumulated payments owed to power distribution companies. The revised budget is likely to be placed before the Delhi Assembly during its winter session this month, and the government may approve the extra allocation.
The free electricity scheme was introduced in 2015-16, when Delhi had about 52.62 lakh power consumers and subsidy spending stood at Rs 1,442 crore, the Times of India noted. Over the past decade, the number of consumers has risen to nearly 69 lakh, while the subsidy bill has almost tripled. Officials estimate that if the current trend continues, the outgo could climb to around Rs 4,200 crore this year. More than 83 per cent of Delhi's electricity consumers are domestic users.
Under the scheme, households using up to 200 units of electricity per month receive a zero bill. Consumers with monthly consumption between 201 and 400 units are eligible for a 50 per cent subsidy on the total bill, capped at Rs 800, while those consuming over 400 units pay the full tariff, the Times of India explained.
The rising expenditure also points to the scheme's growing popularity, especially during winter when electricity consumption is typically lower. Official data cited by the Times of India shows a sharp increase in zero-bill households during winter months. In December 2022, around 31 lakh households paid nothing, rising to 29 lakh in January 2023. The numbers jumped to 42 lakh in December 2023 and 35 lakh in January 2024, and further increased to 45 lakh in December last year and 40 lakh in January this year.
The current BJP government has acknowledged the popularity of the subsidy and ruled out discontinuing it. Power minister Ashish Sood told the Times of India that rumours about ending the scheme surfaced after the government took office in February 2025, but the subsidy continues. He added that the installation of new electricity meters has also contributed to the rise in beneficiaries.
Over the years, electricity subsidy spending in Delhi has climbed steadily-from Rs 1,577 crore in 2016-17 and Rs 1,699 crore the following year to nearly Rs 2,940 crore in 2020-21. It crossed Rs 3,200 crore in subsequent years and reached about Rs 3,600 crore in 2024-25, the Times of India reported.
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