Delhi Orders First-Ever CAG Audit Of Private Power Discoms: What It Means For Consumers
Delhi Orders First-Ever CAG Audit Of Private Power Discoms: What It Means For Consumers Published By, Last Updated: July 02, 2026, 12:52 IST In Delhi
Delhi Orders First-Ever CAG Audit Of Private Power Discoms: What It Means For Consumers Published By, Last Updated: July 02, 2026, 12:52 IST In Delhi, electricity tariffs have remained unchanged since 2014-15, resulting in a substantial accumulation of such dues. Rapid Read Representative Image The Delhi government has ordered a Comptroller and Auditor General (CAG) audit of the national capital’s three private power distribution companies (discoms), officials said on Thursday. An order issued by the Power Department on Wednesday said the audit has been entrusted to the CAG under Section 20(1) read with Section 20(3) of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971. The exercise will cover BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL). According to the government, the decision has been taken in compliance with the Supreme Court’s August 6, 2025, judgment, which called for a strict and intensive audit into the circumstances under which the discoms continued operations without recovering regulatory assets.
The order also noted that the CAG had conveyed its in-principle approval for the audit in January this year. Regulatory assets refer to deferred costs incurred by power distribution companies when electricity tariffs are not revised in line with increasing supply expenses. These costs accumulate over time and are later recovered from consumers, generally along with interest. In Delhi, electricity tariffs have remained unchanged since 2014-15, resulting in a substantial accumulation of such dues. The order further stated that the Power Department had earlier decided in March 2026 to entrust the audit to the CAG. However, the Appellate Tribunal for Electricity (APTEL) set aside that decision in April, observing that the mandatory procedure under Section 20(3) had not been followed. Thereafter, the government issued notices to the three discoms on June 6 seeking their representations, followed by a personal hearing on June 22. The Delhi High Court, while dismissing a writ petition filed by the discoms as premature on June 22, clarified that the competent authority was free to independently decide the matter on its merits, the order said.
After considering the representations submitted by the companies and the Power Department’s comments, the Council of Ministers recommended that the audit be assigned to the CAG in the public interest. The Lieutenant Governor subsequently concluded that the objections raised by the discoms did not provide any tangible grounds to oppose the audit and approved the CAG probe, according to the order. It also stated that the audit would cover all incidental and ancillary matters required for carrying out the exercise in accordance with the law. The order directs the three discoms and all other concerned authorities to extend full cooperation by providing the records and information sought by the CAG. It further states that the audit should preferably be completed within three months, subject to any extension that the CAG may consider necessary based on the scope and complexity of the exercise. ‘Victory For Power Consumer’ Reacting to the decision, Delhi Power Minister Ashish Sood described the formal order for the CAG audit as a landmark step towards improving transparency, accountability and governance in the capital’s power sector.
The BriefWire