Delhi Government Orders Comprehensive CAG Audit of Private Power Distribution Companies Nationwide

New Delhi :  The Delhi government has ordered a rigorous financial audit of the national capital’s three private power distribution companies (DISCOMs) by the Comptroller and Auditor General (CAG) of India. The landmark order, issued by the Power Department following approval from the Lieutenant Governor, mandates an intensive probe into BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL).

 The decisive intervention was necessitated by a massive financial bottleneck: a staggering ₹38,500 crore accumulated over the years as "Regulatory Assets." Regulatory assets are essentially deferred operational costs that build up when electricity tariffs are frozen despite a sharp rise in power procurement and supply expenses.

In Delhi, electricity tariffs have remained unchanged since the 2014–15 fiscal cycle, creating an unsustainable financial strain on the local energy ecosystem.  Furthermore, the audit complies directly with a supreme mandate issued by the Supreme Court in August 2025.

The apex court called for a time-bound, strict audit to examine the specific circumstances under which these private entities continued operations without active recovery of these swelling multi-crore assets, which add roughly ₹15 crore daily in interest burdens.

 The DISCOMs previously challenged the state's intervention, but the Delhi High Court dismissed their petitions as premature, paving the way for the formal audit. Delhi Power Minister Ashish Sood described the move as a historic victory for public transparency.

He asserted that consumers and honest taxpayers have an absolute right to know how these multi-crore dues expanded, adding that the state allocates nearly ₹4,000 crore annually in electricity subsidies. The CAG has been directed to thoroughly audit the companies' transaction records and financial positions, with instructions to complete the process within three months.