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Delhi Government Considers Limiting Free Electricity for Dormant Households

The Delhi Government is exploring the possibility of restricting electricity subsidies for “dormant” consumers whose homes remain locked for extended periods and record zero power consumption for months. These consumers are typically residents who stay outside the city or abroad for long durations.

Under the existing scheme, households using up to 200 units of electricity per month receive a 100% subsidy, which also covers fixed electricity charges. As a result, even homes with no power usage continue to receive zero bills, with the government paying fixed charges of up to Rs 200 per month on their behalf.

Officials indicated that the number of such dormant connections is significant and fluctuates throughout the year. Many of these households remain unoccupied for long periods, yet continue to receive the benefits of the subsidy. According to estimates, the government spends around Rs 50–Rs 60 crore annually to cover electricity charges for these zero-consumption homes.

The issue came under review after the Comptroller and Auditor General of India flagged the expenditure, prompting authorities to reassess this aspect of the power subsidy program. Officials said the government may consider restricting subsidies for households that consistently record zero electricity usage.

At the same time, the government is evaluating provisions to restore subsidies if such dormant consumers become active again and begin using electricity.

Authorities clarified that the proposed review should not be interpreted as a move to end or significantly curtail the free electricity scheme. The government has already allocated funds in the budget to continue the subsidy program.

Currently, the subsidy structure in Delhi provides full subsidy for households consuming up to 200 units of electricity per month. Consumers using between 201 and 400 units receive a 50% subsidy capped at Rs 800, while those exceeding 400 units are not eligible for any subsidy and must pay the full tariff.

According to official data, Delhi had around 62.6 lakh domestic electricity consumers as of July 2025, accounting for about 83% of all power users in the city. On average, around 29 lakh households received zero electricity bills in 2025, up from about 27.3 lakh in 2024. During winter months, when electricity consumption drops, the number of zero-bill households can exceed 45 lakh.

The subsidy expenditure has steadily increased as the number of electricity connections in the city has grown. In the 2025–26 budget, the Delhi government allocated Rs 3,600 crore for power subsidies, though the final expenditure is expected to exceed Rs 4,000 crore.

The subsidy is reimbursed by the government to the city’s distribution companies—BSES Rajdhani Power Limited, BSES Yamuna Power Limited, and Tata Power Delhi Distribution Limited—which provide electricity to consumers at discounted tariffs under the scheme.