AAP slashes power tariffs by half, lets free water flow

SOP STORY Govt says has fulfilled poll promises; opposition, experts, residents question move, say subsidies not answer

NEW DELHI: Fulfilling two major poll promises, the Aam Aadmi Party (AAP) government Wednesday slashed power tariffs by 50% and announced free water to every household with a functional meter.

Under the scheme that will take off from March 1 and cost the exchequer around `1,670 crore annually, households in Delhi that consume an average 400 units of power per month will see their bills halved while those that use 20,000 litres of water a month will pay nothing for it.

“Jo kaha so kiya. Bijli half rate par aur pani muft kiya. Baki wade bhi pure karenge. Bas aap apna sath banaye rakhiyega (we’ve done as we said. Power at half rate and free water. We will fulfil our other promises too),”tweeted chief minister Arvind Kejriwal after the decision was taken at a cabinet meeting.

Deputy chief minister Manish Sisodia said the power tariff reduction would benefit 36 lakh or 90% of households. Similarly, the water subsidy will reach 18 lakh families with functional meters. However, if consumption crosses the 400 units or 20,000 litres mark, then full payment will have to be made.

The power subsidy will cost the government `70 crore in March and `1,427 crore for the next financial year. The free water supply will cost `21 crore next month while `250 crore has been set aside for the same for 2015-16.

While the water subsidy will run for five years, as promised in the AAP manifesto, Sisodia said the power relief will continue till the Comptroller and Auditor General completes its audit of the finances of power distribution companies — orderedbyAAPduringitsfirst49-day stint in power. “Relief in electricity bills will continue even in the eventualityof anytariff hikebytheDelhi ElectricityRegulatoryCommission,” said a senior government official.

Kejriwal and power minister Satyendra Jain met CAG Shashi Kant Sharma earlier in the day to discuss the status of the audit.

Prime Minister Narendra Modi recently indirectly criticised AAP’s move of doling out freebies — it had announced similar decisions last year too — by saying parties make these promises in states dependent on other states for electricity. The Delhi BJP termed it an eyewash.

“The money should be used for development rather than providing subsidy,” said Rajiv Kakria of the Greater Kailash RWA.

Critics said giving free water would encourage wastefulness in a city where the commodity is already in short supply. Also, the fact that 14 lakh households, particularly those in slums and unauthorised colonies, don’t have piped water network means the benefit wouldn’t reach those who need it the most — the poor.

(90%) households, who consume 400 units a month on average. If usage goes above this limit, full rate charged

entails use of tubelights, fans, iron, reduction in tariffs up to 400 units a month fridge (165l), washing machine, TV, mixie, computer, water pump

Coverage shrinks in summer due to AC use, which takes avg monthly consumption to 500-600 units

per month. Subsidy will continue till CAG audit of discoms is completed households

per family (5 members) per litres free per household per month for 5 years

month means 130 litres per person per day. Average person requires 70 litres a day for household needs

a month. approved by cabinet for next fiscal, to include cost of installation of more meters households don’t have piped water. Includes poor in slums, resettlement/unauthorised colonies