Rising Consumer Numbers Drive Delhi’s Power Subsidy Increase

Rising Consumer Numbers Drive Delhi’s Power Subsidy Increase.webp

New Delhi, March 26 With the increase in the number of domestic electricity consumers in Delhi, the city government's power subsidy bill has more than doubled in the past decade, according to a report.

The Delhi government released a power subsidy of Rs 4,037.63 crore in the current fiscal year, up to February 2026, as stated in the recently tabled economic survey report in the Assembly.

The number of electricity consumers in Delhi increased by nearly 40 per cent in the last decade and currently stands at over 73 lakh. According to the percentage of the total number of consumers, the domestic category comprises the highest 84.1 per cent.

During the period of 2015-16 to 2024-25, the number of electricity consumers in Delhi increased from 52.62 lakh to 73.61 lakh, an increase of 20.99 lakh consumers during this period.

According to the report, approximately 47.58 lakh (monthly average) households were receiving power subsidies in Delhi, which is more than 80 per cent of the total domestic electricity consumers.

In line with the increase in the number of consumers, the government's subsidy has also increased from Rs 1,442.76 crore in 2015-16 to Rs 4,037.62 crore up to February 2025-26.

The subsidy amounts were Rs 1,577.94 crore in 2016-17, Rs 1,676.70 crore in 2017-18, Rs 1,699.29 crore in 2018-19, Rs 2,405.59 crore in 2019-20, Rs 2,939.99 crore in 2020-21, Rs 3,250 crore in 2021-22, Rs 3,161.22 crore in 2022-23, Rs 2,426.65 crore in 2023-24 and Rs 3,600.50 crore in 2024-25, according to the report.

The power subsidy is estimated to be Rs 3,500 crore for the financial year 2026-27.

The report pointed out an increase in electricity consumption in Delhi from 29,415.87 million units (MUs) in 2015-16 to 30,996.29 MUs up to December 2025 in the current financial year.

The distribution of electricity in Delhi to various categories of consumers increased from 24037 MU in 2015-16 to 33009 MU in 2024-25.

The Delhi government provides free electricity to consumers who use a monthly amount of 200 units. Those using 201 to 400 units per month are paid a 50 per cent subsidy.

Victims of the 1984 anti-Sikh riots and the Lawyers' chambers also provided a special subsidy on power consumption.
 
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1984 anti-sikh riots 2015-16 2024-25 consumer electricity usage delhi electricity delhi government domestic electricity consumers electricity consumption electricity units (mu) energy consumption financial year 2026-27 government subsidies household electricity power consumption power subsidies
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