"Families using power till 400 units per month will get it on half the price," deputy CM Delhi Manish Sisodia announced in a press conference.
"Those families using more than 400 units per month will have to pay the entire bill," Manish Sisodia added.
This will be effective from the March 1, Manish Sisodia said.
The reduction in power tariff will benefit 90% families in Delhi, Sisodia said.
The government had allocated Rs 70 crore for this subsidy for a month. From April 1, the budget allocation for this scheme will be Rs 1,427 crore per annum.
Manish Sisodia also said that the Delhi government will provide 20,000 litres of free water per month to every household.
READ ALSO: Costs rise for AAP's 50% free power pledge in Delhi
Why do parties promise free power, Modi asks
In its manifesto, AAP had promised to cut power tariff by 50 per cent immediately after coming to power and said the rates will be revised based on the findings of the CAG audit.
Earlier in the day, Delhi chief minister Arvind Kejriwal met Comptroller and Auditor General Shashi Kant Sharma and discussed the status of scrutiny of finances of the private power distribution companies by the auditor which was ordered by the AAP government during its first stint.
Sources said Kejriwal conveyed to Sharma his government's view on the CAG audit of the finances of the discoms and its plans to review the electricity tariff after the findings of the audit.
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