The decision was taken at a cabinet meeting presided over by Chief Minister Arvind Kejriwal. The cut in tariff will be effective from Sunday.
Deputy Chief Minister Manish Sisodia also announced that government will also provide 20,000 litres of free water to every household per month.
However, water tariff will be charged if the consumption limit exceeds 20,000 litres.
The free water scheme will come into force from March 1. Sisodia said consumers getting free water will not require to pay for sewer charges.
On the free power scheme, Sisodia said government will review the power rates after CAG completes audit of the accounts of the power discoms.
In its manifesto, AAP had promised to cut power tariff by 50 percent immediately after coming to power.     

The AAP had also promised 20 kilolitres (20,000 litres) of free water to every household per month. The previous AAP government had introduced the free water scheme but it was discontinued after it quit.

Kejriwal meets CAG on audit of discoms

Arvind Kejriwal on Wednesday 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.
The AAP government had ordered CAG audit of the discoms since 2002 after power distribution was privatised. Delhi discoms are a 51:49 percent 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.

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