The decision was taken by at a Cabinet meeting of the government chaired by Chief Minister Arvind Kejriwal yesterday.
Deputy Chief Minister Manish Sisodia told a press conference that the decision, which will benefit around 2,274 families, will cost the exchequer around Rs 13 crore.
He said the existing rebate scheme of the Delhi government for connections consuming up to 400 units per month will be extended to the families.
However, he did not elaborate on why these families were not getting the benefit of half power tariff in such cases.
The Centre had in 2014 raised the compensation for these affected families to Rs 5 lakh.