Delhi’s electricity sector represents a case of privatization in the face of electoral populism. Publicly-supported privatization-based reform, introduced by the Congress government, yielded some service quality gains to customers and political advantage to the government. However, these reforms also sowed the seeds of future discontent by introducing tension between the credibility of reforms and that of the regulator. Reforms became politically unpopular, as the public was mobilized to protest tariff hikes and question the gains from reform. Moreover, financial pressures rose as a result of two forces: growing regulatory assets allowed by the regulator as a way of staving off tariff increases and increases in power purchase costs due to imprudent contract lock-in. A new AAP in government sought consumer gains through transparency-focused reform along with targeted subsidies, but this fell afoul of Delhi’s federal politics. Reform allowed Delhi to change the equation between politics and electricity, but not in a manner that was sustainable.