Intensive Audit of Delhi Power Discoms Set in Motion by DERC

The Delhi Electricity Regulatory Commission (DERC) is pressing forward with an intensive audit of the capital's power distribution companies (discoms). This comes after the Appellate Tribunal for Electricity (APTEL) overruled the commission's previous attempt to conduct the audit through the Comptroller and Auditor General (CAG), stating it violated legal statutes.

Forced to reconsider its strategy, DERC has now launched a tender to engage a CAG-empanelled chartered accountancy firm, aligning with the Supreme Court's directive issued on August 6, 2025. The court order mandates DERC to liquidate significant regulatory assets and investigate why these assets have persisted without recovery over the years.

The tribunal highlighted that the Supreme Court order called for a focused audit on the circumstances that led to the accumulation of regulatory assets, directing DERC to complete the task by July. DERC, handling Rs 38,552 crore in regulatory assets from discoms, may seek more time for implementation.

(With inputs from agencies.)