With an eye on the forthcoming assembly polls, Delhi government decided on Friday not to hike power tariff this year.
The government also decided to enforce the proposed subsidy on power to domestic consumers from April 1.
A decision in this regard was taken at a Cabinet meeting held in New Delhi chaired by Chief Minister Sheila Dikshit.
"There will be no tariff hike this year. We first want the discoms to improve the services to the satisfaction of the people," Power Minister A K Walia told reporters.
The minister said the proposed subsidy for all domestic consumers of electricity up to 200 units per month during peak winter and summer months declared last year would be enforced from April 1.
Last year, Delhi government
in a meeting had approved cheaper electricity up to 150 units per months which was later enhanced to 200 units per month during the peak summer months of May, June, July and August and peak winter months of December and January.
Hence, consumers would stand to benefit on account of cheaper power that would be provided at Rs 1.40 per unit, Rs 1 less than the usual rate, during these six months of the year. More than 10 lakh people would benefit by the government's decision.
The decision to enhance the subsidy was taken keeping in view the average use of various electrical appliances during winter and summer months.
According to the government, the subsidy would cost the exchequer to the tune of Rs 135 crore (Rs 1.35 billion) every year.