The Delhi government under Chief Minister Rekha Gupta has instructed the Comptroller and Auditor General to audit the capital’s power distribution companies. The move addresses worries about nearly 38,500 crore rupees in regulatory assets built up over years that consumers are ultimately expected to repay through tariffs.
The step follows the Delhi High Court’s June 22 decision not to intervene in the government’s plan for a CAG review of BSES Rajdhani Power and BSES Yamuna Power. A vacation bench dismissed the companies’ petition as premature. Power Minister Ashish Sood welcomed the outcome.
A Power Department order directs the CAG to conduct a detailed examination of why the three discoms—BRPL, BYPL and TPDDL—have operated without recovering the growing regulatory assets. The audit is to be finished within three months of notification, though extensions may be allowed based on scope.
A BRPL spokesperson said the matter remains under court consideration and declined further comment. The other companies offered no immediate response.
Absent additional legal challenges, this would represent the first CAG audit of Delhi’s discoms since privatization in 2002. An earlier effort by the previous government was stopped by the High Court in 2015.
Regulatory assets reflect deferred costs from fuel price variations, representing the gap between supply expenses and revenue from tariffs plus subsidies. The outstanding sum is collected via a surcharge on consumer bills.
The cabinet approved the recommendation for a strict audit at its June 29 meeting. The Lieutenant Governor has endorsed the order.
Earlier, APTEL rejected a DERC request for a CAG audit and instead directed the regulator to begin clearing the assets within three weeks. DERC had reported the assets as 19,174 crore for BRPL, 12,333 crore for BYPL and 7,046 crore for TPDDL. The total has grown because tariffs have stayed unchanged for more than a decade.
The order references a Supreme Court ruling calling for a comprehensive audit. The CAG had given in-principle approval in January, pending authorization. Notices were issued to the discoms in June, their submissions were reviewed, and the cabinet then considered the matter.
