Delhi Takes Charge: CAG Audit of Power Discoms to Address Rs 38,000 Crore Dues

The Delhi government is set to conduct a comprehensive audit of the city's power distribution companies, as ordered by State Power Minister Ashish Sood. The audit aims to address unpaid dues amounting to Rs 38,000 crore, associated with regulatory assets accumulated over several years.

The Delhi Electricity Regulatory Commission (DERC) is currently deliberating over potential tariff revisions as part of a broader recovery plan. This plan was necessitated by the significant costs and delays stemming from regulatory assets, which are financial gaps between incurred costs and collected revenues.

Minister Sood emphasized the government's commitment to shielding power consumers from any additional costs. The Supreme Court's directive mandates these dues be cleared over a span of seven years, beginning April 2024, with rates unadjusted since 2014-15 contributing to the mounting financial burden.