New Delhi, Aug 21 (PTI) The Delhi government is considering offering an option for power consumers to opt out of the subsidy, which has increased significantly due to the rising number of users over the years, officials said on Friday.
Under the new mechanism being discussed, power consumers will only receive the subsidy if they choose to opt in, they said.
A senior government officer said the plan is that a website will be developed to allow financially stable consumers to voluntarily abandon the subsidy they currently receive.
Consumers who require subsidised electricity will need to register each financial year to continue receiving the benefit, he said.
The Delhi government, led by the Aam Aadmi Party (AAP), began providing power subsidies in 2022 exclusively to those domestic consumers who applied for it. A mobile phone number was also designated for consumers to place a missed call to receive the subsidy.
The rationale behind this decision was that many individuals wanted to relinquish the power subsidy benefit.
Currently, under the existing subsidy scheme, the Delhi government offers free electricity to domestic consumers who use up to 200 units per month. Those consuming between 201 and 400 units per month receive a 50 per cent subsidy, capped at Rs 800.
Over the past decade, the Delhi government’s power subsidy bill has more than doubled due to an increase in the number of domestic consumers.
As of February 2026, the amount allocated for power subsidy by the Delhi government reached Rs 4,037.63 crore. For the current financial year (2026-27), the government has budgeted Rs 3,500 crore for this purpose.
The number of power consumers in Delhi rose by nearly 40 per cent in the last decade and currently stands at over 73 lakh. According to the latest economic survey report, the domestic category constitutes the highest percentage at 84.1 per cent of total consumers.
A Comptroller and Auditor General (CAG) of India report has also flagged that the power subsidy policy failed to target deserving and disadvantaged sections of society, as a majority of beneficiaries fell in the higher consumption bracket. PTI VIT MPL MPL
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