New Delhi, February 26, 2015 (Agencies) The Aam Aadmi Party (AAP) government on Wednesday slashed electricity tariffs by 50 per cent for households consuming up to 400 units per month by fulfilling its election promises. It also ordered free water up to 20,000 litres per household every month. The cheap power and free water benefits for millions of consumers will start from March 1 and continue thereafter.

Power consumers who use even one unit of power over the limit of 400 units will have to pay the entire bill at higher rates. In case of free water, there is a rider that if the monthly consumption of water crosses 20,000 litres in a month, the consumer will have to pay the bill for the entire consumption for that month.

The pocket-friendly bonanza for 36.06 lakh power consumers will put a financial burden on the government of about Rs 70 crore a month. The free water for 18 lakh families getting metered  supply will put a burden of Rs 21 crore a month.  Deputy Chief Minister Manish Sisodia,  while briefing reporters on the decisions taken in the Cabinet chaired by Chief Minister Arvind Kejriwal,  said: “We have delivered what we promised.”

“About 36.06 lakh families, that add up to 90 per cent of domestic power consumers in Delhi, will benefit from the subsidy,” he said, adding that the 400-unit limit for availing the subsidised rates will encourage people to use electricity judiciously.

“The Cabinet has approved an estimated amount of Rs 1,427 crore for the next financial year to provide relief in electricity bills,” he said.
The deputy chief minister said the audit of accounts of the power companies would hopefully be completed in the next financial year and the picture may get clear on where to get the money from for subsidising the power bills.

At present, consumers who use between 0-200 units pay Rs 4 a unit and those who consume 200-400 units pay Rs 5.95 per unit. The new rates for 0-200 units will Rs 2 per unit and for 200-400 units Rs 2.98 per unit. At present, consumers who use between 401-800 power units in a month pay Rs 7.30 per unit. 

A consumer who uses 401 units of power in a month from March 1 will not be eligible for any rebate.

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