CAG to Audit Delhi's Three Power Discoms Over ₹38,500 Crore Unrecovered Costs

The Delhi government has directed the Comptroller and Auditor General of India (CAG) to conduct a “strict and intensive audit” of three power distribution companies (discoms) — BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL). The audit focuses on the circumstances under which these companies have continued operations despite non-recovery of regulatory assets.

Regulatory assets are costs incurred by discoms that are not recovered through current electricity bills but are recognised as recoverable from consumers via future tariffs. According to officials, power tariffs in Delhi have not been revised since 2014-15, leading to an accumulation of such costs over the years. The accumulated regulatory assets now stand at approximately ₹38,500 crore, a burden that is set to be passed on to consumers.

The order, dated July 1 and made public on July 4, seeks completion of the audit within three months unless the CAG requests an extension due to the “scope and complexity” of the exercise. The audit will cover all matters incidental or ancillary to the financial operations of the discoms.

This development follows a Supreme Court directive in August last year, which ordered a “strict and intensive audit of the circumstances in which the Distribution Companies have continued without recovery of Regulatory Assets.”

Delhi’s Power Minister, Ashish Sood, described the CAG audit as a “historic moment” for transparency, accountability, and governance reforms in the power sector. He stated, “For years after the power sector’s privatisation, many financial decisions, special arrangements, and growing liabilities escaped proper public scrutiny. The previous AAP government chose to protect the system instead of examining it. What they failed to do in 10 years, our government has initiated within a few months.” He added that the people of Delhi have a right to know how regulatory assets worth nearly ₹38,000 crore grew and who benefited while the burden mounted on citizens.

Responding to the order, a BSES spokesperson said the issue is currently sub judice and declined further comment. “As the matter is under judicial consideration, it would not be appropriate to comment further,” the spokesperson said.

The audit is expected to examine the financial decisions and special arrangements that led to the accumulation of regulatory assets. The government has sought full cooperation from all discoms, emphasising a commitment to cleaning up the power sector and building a transparent system that works in the public interest.