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Delhi’s Electricity Subsidy Bill Likely to Cross Rs 4,000 Crore in 2025–26 as Beneficiary Base Expands

Delhi’s electricity subsidy expenditure is projected to cross the Rs 4,000 crore mark for the first time in 2025–26, driven by a steady increase in the number of beneficiaries and pending payments to power distribution companies, according to government sources.

The Delhi government has allocated Rs 3,849 crore for electricity subsidies in the current financial year, which is around Rs 250 crore higher than the spending in 2024–25. However, the Power Department has now sought an additional Rs 361 crore through the revised budget to clear outstanding subsidy dues.

Officials said the demand for extra funds reflects the growing number of consumers enrolled under the free electricity scheme, along with accumulated liabilities payable to distribution companies. The revised budget proposal is expected to be tabled in the Delhi Assembly during the winter session, and government approval is considered likely.

The free electricity scheme was introduced in 2015–16, when Delhi had 52.62 lakh power consumers and subsidy expenditure stood at Rs 1,442 crore. Over the past decade, the number of consumers has risen to nearly 60 lakh, while subsidy spending has almost tripled. Officials estimate that, at the current pace, the subsidy outgo could touch Rs 4,200 crore in the coming year.

More than 83 percent of electricity consumers in Delhi are domestic users, making households the primary beneficiaries of the scheme. Under the policy, homes consuming up to 200 units per month receive a zero electricity bill, while those using 201–400 units are eligible for a 50 percent subsidy, capped at Rs 800. Consumers exceeding 400 units pay the full tariff.

Government data indicates a sharp rise in zero-bill households during winter months, when electricity consumption tends to be lower. In December 2022, around 31 lakh households paid no electricity bill, rising to 42 lakh in December 2023 and further to 45 lakh in December last year. Similar increases were recorded in January figures over successive years.

The growing subsidy burden has not dampened political support for the scheme. The current BJP-led government has ruled out any move to discontinue it. Power Minister Ashish Sood said that despite speculation after the new government assumed office in February 2025, the subsidy programme remains intact. He added that the installation of new electricity meters has contributed to the increase in eligible consumers.

Over the years, Delhi’s power subsidy expenditure has risen consistently—from Rs 1,578 crore in 2016–17 and Rs 1,677 crore in 2017–18, to Rs 2,940 crore in 2020–21, crossing Rs 3,200 crore in subsequent years and reaching Rs 3,600 crore in 2024–25.

Officials said the trend underscores both the popularity of the scheme and the fiscal pressure it places on the state exchequer as Delhi’s electricity consumer base continues to expand.