Power Rates In Delhi Slashed. Is That Really Cool?

Power Rates In Delhi Slashed. Is That Really Cool?

Power Rates In Delhi Slashed. Is That Really Cool?

Power distribution company Tata Power Delhi Distribution Limited recently said that the peak power demand for Delhi is expected to shoot up to a record 7,000 megawatt (mw) in June this year. This is largely because the national capital is likely to have it more scorching this summer than ever. At a time like this, the Delhi Electricity Regulatory Commission (DERC) has introduced a cut in the power tariffs. Experts and analysts fear that this will do more bad than good to the residents, consumption wise. A rise in power consumption would in all likelihood raise the temperature and pollution levels in the city. 

What is new?

The DERC has slashed the electricity charges, across the board, by up to 25 per cent while taking hiking the fixed rates by six times. The fixed charges make up for a small part of the total bill. So, the consumers will witness a striking drop in their electricity bills.

While the price for consumption up to 10 kilowatt (kw), under the non-commercial category, has been reduced from Rs 8.80 to Rs 8 unit, for industrial users, the tariff for consumption of up to 10 kW has been reduced from Rs 8.45 per unit to Rs 7.25.

Revised tariffs for residential users (upto 0.2 kw)


Tariff in 2017-18 per unit (in Rs)

Tariff in 2018-19 per unit (in Rs)


Rs 4

Rs 3


Rs 5.95

Rs 4.50


Rs 7.30

Rs 6.50


Rs 8.75

Rs 7.75 

How will the revised tariffs impact you? 

The revised power tariffs, effective April 1, will lead to an overall reduction in power bills. However, the biggest beneficiaries of the new tariffs would be the high-consumption users while domestic consumers falling under the 0.2-kW load category will be the ones who might have to pay a higher bill than before due to a sharp increase in the fixed rate. 

For the consumers who enjoy a 50 per cent subsidy on bills for consuming up to 400 units, this will further bring down their electricity bills.  

No change for electric vehicles

In order to promote e-rickshaws and vehicles, the tariff has been kept unchanged at Rs 8 per unit. A new introduction in the tariff plan is the ‘time of the day’ tariff or surge charges for all consumers except domestic ones. The ‘time of the day’ tariffs vary based on peak and off-peak demand. The surcharge levied on energy charge during peak hours would be 20 per cent while there would be a rebate of 20 per cent during off-peak hours.

How will Delhi cope with excess power usage? 

In the Delhi Budget 2018-19, the state’s Finance Minister Manish Sisodia allocated Rs 2,190 crore, four per cent of the total budget expenditure of Rs 53,000 crore for the energy sector. So far, the total capacity of renewable energy in Delhi until February 2018 was 133.13 mw, which included 81.13 mw of solar power and 52 mw of electricity generated from waste-to-energy plants. The government would also purchase an extra 1,000 mw of solar and wind energy in the coming year.

In other announcements, the Delhi government is also planning to bring out a Group Net Metering policy to enable utilisation of huge solar potentials by roping in state-run schools, markets and other buildings of government. Apart from this, a pilot named agriculture-cum-solar farm scheme to incentivise installation of solar panels on raised structures without affecting farming activities will be launched soon.

While all of these initiatives will make a long-term impact on the reduction of carbon emissions and air pollutants, the reduced charges, for now, would bring cheer to Delhiites.

Last Updated: Fri Apr 27 2018

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