Rules violated in power subsidy: Delhi LG VK Saxena

NEW DELHI: Taking note of a report that the Delhi Electricity Regulatory Commission's 'statutory advisory' to Delhi government on "restricting" electricity subsidy to the "poor and needy consumers" was put in abeyance, lieutenant governor V K Saxena has asked chief secretary Naresh Kumar to direct the power department to place it before the council of ministers for a decision within 15 days.
The report was prepared by Kumar while looking into the power generating companies' complaints about unpaid dues of power distribution companies. It was submitted to the LG and CM Arvind Kejriwal in December 2022.
The chief secretary's report observed that DERC had advised Delhi government in October 2020 to extend the power subsidy only to consumers with a sanctioned load of either up to 3KW or up to 5KW. This would cover almost 95% of the domestic consumers and save the government up to Rs 316 crore. DERC said that the consumers with loads above 5KW couldn't be deemed to be "poor".
When the power department intimated the minister concerned about this advice in November 2020, he directed it to be placed before the cabinet in 2021. The report pointed out that the power department put up a note before the minister on April 13, 2021, but he rejected it, saying the power subsidy as decided by the cabinet - 100% waiver on monthly consumption of up to 200 units and 50% on 201-400 units - would continue.
The chief secretary said that since the matter involved financial implications of between Rs 200 crore and Rs 316 crore annually, the competent authority to decide this matter was the cabinet.
As reported by TOI earlier this month, the power department had started preparing the proposal for the cabinet yet again to keep consumers of sanctioned loads of more than 3kW out of the subsidy regime.
The chief secretary's report claimed that the power department not only did not put up DERC's statutory advice before the LG, but also didn't place it before the cabinet for its consideration. The approval of the finance department was not taken either before continuing the subsidy scheme.
The chief secretary referred the matter to the law department, which concurred that the matter should have been placed before the cabinet and LG and given the departure from the rules, the chief secretary should invoke rule 57 of the Transaction of Business Rules (ToBR), and personally bring it to the notice of the minister-in-charge, chief minister and LG.
Referring to the report, the LG said in his note, "The existing policy for granting electricity subsidy was decided by the council of ministers... the minister is not competent to take a decision in a matter which falls within the purview of the council of ministers as per ToBR." He added that the CM should be apprised about the lapses in adhering to the rules by the then power minister and requested to instruct all the ministers-in-charge to scrupulously follow the provisions of ToBR.