NEW DELHI: The Delhi government has ordered a CAG audit of the capital’s three private power distribution companies to examine how regulatory assets worth nearly Rs 38,500 crore accumulated over the years without being recovered from consumers.
The power department on Wednesday directed the CAG to conduct a “strict and intensive” audit into the circumstances under which BSES Rajdhani Power Ltd (BRPL), BSES Yamuna Power Ltd (BYPL) and Tata Power Delhi Distribution Ltd (TPDDL) continued to carry the mounting regulatory assets on their books.
According to the order, all concerned authorities, including the distribution firms, have been asked to extend full cooperation and provide all records, information and assistance required by the CAG and its authorised officers for the audit.
The audit must be completed, preferably within three months of the order date, although the CAG may extend the timeline depending on the scope and complexity of the exercise.
Calling it a victory for electricity consumers and honest taxpayers, Delhi Power Minister Ashish Sood alleged that after the privatisation of the city’s power sector, several financial decisions, special arrangements and rising liabilities escaped public scrutiny.
He also targetted the previous AAP government, accusing it of protecting the system instead of examining it. “What they failed to do in 10 years, our government has initiated within a few months,” he said.
Sood said people have a right to know how regulatory assets kept increasing and who benefited while the financial burden continued for consumers.