Delhi govt to use pvt discom subsidies to clear dues of state-run power stations

By: |
April 22, 2020 1:45 AM

TPDDL and BSES, the power distribution units of Tata Power and Reliance Infrastructure, respectively, supply power in the national capital.

The Delhi government has also decided to extend such benefits of low power bills to households till March 31, 2021.The Delhi government has also decided to extend such benefits of low power bills to households till March 31, 2021.

Delhi power department has decided to use 50% of the subsidy that it owes to the national capital’s private power distribution companies (discoms) to clear the latters’ due to the state-run power stations.

In a recent order issued by the Delhi government, the power department said that it “shall release 50% of the first quarter of subsidy directly to discoms and remaining 50% subsidy will be credited to the account of IPGL, PPCL and DTL (state-run utilities) to the extent of outstanding dues to discoms to these companies”.

The discoms would receive lower subsidies from the government even after the power department acknowledged that cash flow of the discoms has been impacted by the lockdown imposed to control the coronavirus outbreak. The subsidies that these discoms receive from the government include the unpaid power bills of households consuming less than 200 units of electricity in Delhi. On top of that, residences using 200–400 units in a month also get Rs 800 discount, which are paid for by the government through subsidies. The Delhi government has also decided to extend such benefits of low power bills to households till March 31, 2021.

TPDDL and BSES, the power distribution units of Tata Power and Reliance Infrastructure, respectively, supply power in the national capital.

Though consumers do not have to pay, the rate of electricity for less than 200 units is Rs 3/unit, and the slab rate for 200-400 unit is Rs 4.5/unit.

The Delhi Electricity Regulatory Commission, in its tariff schedule for FY20, had reduced the cost of electricity for domestic consumers and increased the same for industrial units.

Household and agricultural sectors are cross-subsidised by industrial and commercial users. While the fixed charge of industrial consumers was set at Rs 250/kilovolt-ampere/month, their energy charges were raised to Rs 7.75/unit from Rs 7.25/unit.

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