"We will restrict our protest at Jantar Mantar and will not take out a rally up to the chief minister's residence, as she has agreed to meet a few AAP representatives at around 1 p.m. today (Sunday)," Manish Sisodia, a senior AAP member told a news agency.
He also said that the Delhi chief minister has agreed to accept the letters written to her by the people of Delhi highlighting the inflated bills.
The party will be sending a few representatives to the chief minister's residence Sunday to hand over the letters.
Arvind Kejriwal, the convenor of AAP appealed to the people to assemble in large numbers at Jantar Mantar in central Delhi to protest against the issues.
"We have already assembled at Jantar Mantar. Public rally is on. Please do reach Jantar Mantar," Arvind Kejriwal, said on twitter.
Meanwhile, the Delhi Traffic Police announced restrictions in and around Jantar Mantar.
"The Janpath Road from Tolstoy Marg and Sansad Marg which leads towards Jantar Mantar will remain blocked due to the (AAP) demonstration," a Delhi Traffic Police official said.
Earlier this month, Kejriwal fasted for 15 days to press his demand for reduction in water and electricity tariffs in the capital.
Earlier AAP spokesperson Aswathi Muralidharan said: "We were planning to hold a protest march from Jantar Mantar to the chief minister's residence. But she called up one of the AAP representative today (Sunday) morning and agreed to accept 10,50,000 letters written to her by the people of Delhi highlighting the inflated bills."