Delhi Orders CAG Audit of Three Private Power Distribution Companies
The Delhi government has ordered a Comptroller and Auditor General (CAG) audit of three private power distribution companies operating in Delhi. The order, issued by the power department on Wednesday and announced on Thursday, mandates an intensive probe into how the companies operated without recovering regulatory assets.
The audit will cover BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), and Tata Power Delhi Distribution Limited (TPDDL). This decision follows a Supreme Court judgment on August 6, 2025, which directed a strict audit of the circumstances surrounding the discoms' operations. The CAG had previously given its in-principle approval for the audit in January.
Regulatory assets are deferred costs that arise for distribution companies when electricity tariffs are not revised to match rising supply expenses. In Delhi, electricity tariffs have not been revised since the 2014–15 financial year, resulting in a significant accumulation of unpaid dues that are eventually recovered from consumers with interest.
This order follows earlier legal hurdles. An initial decision by the Power Department in March 2026 to entrust the audit to the CAG was set aside in April by the Appellate Tribunal for Electricity (APTEL) on procedural grounds. Following this, the department issued notices to the discoms on June 6 and held a personal hearing on June 22.
On June 22, the Delhi High Court dismissed a premature writ petition filed by the discoms, allowing the competent authority to decide the matter independently. The Council of Ministers subsequently recommended the audit in the public interest, and the Lieutenant Governor approved the probe, concluding that the discoms' objections lacked tangible grounds.
The order directs all three discoms and relevant authorities to cooperate fully and provide all necessary records and information to the CAG. The audit is expected to be completed within three months, though the CAG may extend this period depending on the complexity of the exercise.
Delhi Power Minister Ashish Sood welcomed the decision, calling the formal order a historic moment for transparency and governance in the capital's power sector. Sood stated that the audit represents a victory for every electricity consumer and honest taxpayer in Delhi.
