The Comptroller and Auditor General has found that Delhi's electricity subsidy policy failed to target the disadvantaged and favoured higher consumption households, according to a report tabled by Chief Minister Rekha Gupta in the Delhi Assembly. The audit showed that Rs 31.61 billion (bn) was paid as subsidy in 2022–23. The report indicated that the scheme's design, including a high threshold of 400 units, resulted in large parts of the domestic consumer base receiving benefits.

More than three million (mn) consumers in the zero to 200 unit consumption bracket received an average subsidy of Rs 6,000 per connection per annum, while one point six six million (mn) consumers with consumption above 200 units received an average subsidy per connection of more than Rs 10,000 per annum, about 70 per cent higher. The audit said the rationale for setting the threshold at 400 units, which covered approximately 80 per cent of domestic consumers, was not found on record. The review covered four fiscal years from 2019–20 to 2022–23.

The auditors also identified instances of apparent leakage, noting that over 50,000 consumers had zero consumption for more than 12 months yet received subsidies totalling Rs 178.1 million (mn). More than 90,000 consumers recorded continuous zero consumption for six to 11 months and were paid Rs 118.8 million (mn), and about 170,000 consumers with zero consumption for three to five months received Rs 125.7 million (mn).

The audit concluded that the subsidy outgo per consumer tended to be higher in higher consumption brackets and that the policy paid the benefit to nearly the entire domestic consumer base rather than to targeted disadvantaged groups. The report recommended that the Government of the National Capital Territory of Delhi review the eligibility criteria and put in place controls to prevent payments to inactive connections.