Keeping in line with promises made by Aam Aadmi Party (AAP) during election campaign, the newly-elected Delhi government also announced free 20,000 litres of water per month to every household.
The rates will come into effect from March 1, announced Deputy Chief Minister Manish Sisodia here after a cabinet meeting.
Delhi Chief Minister Arvind Kejriwal today 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.
The first AAP government in January last year had ordered CAG audit of the finances of the three power companies - BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd. It had even warned the discoms that their licenses may be cancelled if they do not cooperate with the audit.
Last week, Kejriwal had said his government was going to cut power tariff "very soon" in line with election promises made by his party.
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.
The AAP government had ordered CAG audit of the discoms since 2002 after power distribution was privatised. Delhi discoms are a 51:49 per cent joint venture between the private companies and the Delhi government.
The discoms had opposed the CAG scrutiny and approached the Delhi High Court, contending that Delhi government's decision asking CAG to audit the power companies' accounts is "patently" illegal on several counts.
The city government had told Delhi High Court last Friday that it was not trying to stop the functioning or interfere in functioning of the discoms but was only trying to bring them under public audit as 49 per cent stake in them was held by it.
(With inputs from agencies)