The Congress government is reportedly considering shifting the financial burden of providing free electricity to households consuming under 200 units—eligible under the Gruha Jyoti scheme—onto other consumer categories. DISCOMs have submitted proposals to the Electricity Regulatory Council (ERC) that suggest increasing electricity charges to recover lost revenue due to delays in subsidy disbursement.
Currently, DISCOMs are facing significant revenue losses as they await government subsidies. To compensate, they propose raising charges by Rs. 1,200 crore for the 2024-25 fiscal year. For those consuming over 300 units, fixed charges could rise from Rs. 10 per kilowatt to Rs. 50, potentially increasing the burden on approximately 26 lakhs consumers.
Additionally, DISCOMs seek to standardize charges across different categories, increasing rates for 33 KV and 132 KV consumers, which could generate an additional Rs. 800 crore in revenue. The total income deficit for DISCOMs is projected at Rs. 14,222 crore for the current year, meaning the state government would need to cover the remaining Rs. 13,022 crore after potential charge increases.
The ERC plans to hold public hearings in three locations to gather opinions on the proposals before making a final decision, which could lead to increased charges by January.