The Delhi government has ordered a Comptroller and Auditor General (CAG) of India audit into the Capital’s private power distribution companies (discoms) to examine the circumstances under which they continued to operate without recovering regulatory assets to the tune of ₹38,000 crore, officials said on Thursday.Delhi government orders a CAG audit into the Capital's power distribution companies to examine functionality without recovery or regulatory assets (Representational/ Unsplash)The government said the decision was in line with the directions of the Supreme Court’s August 6, 2025, judgment, which called for a “strict and intensive” audit in this regard.Delhi power minister Ashish Sood said the formal order for the CAG audit of discoms is a historic moment for transparency, accountability and governance reforms in Delhi’s power sector. “More importantly, it is a victory for every electricity consumer and every honest taxpayer of Delhi,” he said.In an order issued on Wednesday by the power department, it said the CAG had conveyed its in-principle approval for the audit in January. It stated that the audit has been entrusted to the CAG and it will cover BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL), it said.Also Read I Workers find biomedical waste dumped in Gurugram Sector 23a, probe onThe order, a copy of which was accessed by HT, stated, “... Accordingly, the Hon’ble Lt. Governor of the National Capital Territory of Delhi hereby entrusts the Comptroller and Auditor General of India to undertake strict and intensive audit of the circumstances in which the Distribution Companies, namely, BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL), have continued without recovery of the regulatory assets. The audit shall extend to all matters incidental or ancillary to, or necessary for, conducting the aforesaid audit in accordance with law.”Regulatory assets are deferred costs borne by distribution companies when electricity tariffs are not revised in line with rising supply expenses. These costs accumulate over time and are later recovered from consumers, usually with added interest. In Delhi’s case, tariffs have not been revised since 2014-15 and the total regulatory assets to be recovered by the three Delhi discoms amount to ₹38,552 crore. This includes ₹19,174 crore for BSES Rajdhani Power Limited (BRPL), ₹12,333 crore for BSES Yamuna Power Limited (BYPL), and ₹7,046 crore for Tata Power Delhi Distribution Limited (TPDDL).The order directed all agencies and authorities concerned, including the three discoms, to provide full cooperation, and furnish all records and other information sought by the CAG. It underlined that the audit should preferably be completed within three months, subject to any extension considered necessary by the CAG in view of the scope and complexity of the exercise.Also Read I 80 days of Delhi–Dehradun E-way: Light rain creates sinkholes in Shamli, videos viralA similar decision made by the power department in March to entrust the audit to the CAG was set aside by the Appellate Tribunal for Electricity (APTEL) in April on procedural grounds. Subsequently, on June 6, discoms were invited to provide their representations, and a personal hearing was held on June 22.The order said that the Delhi High Court, while dismissing a writ petition filed by the discoms as premature on June 22, clarified that the competent authority was free to independently decide the matter on its merits. After examining the representations and comments of the power department, the Council of Ministers recommended that the audit be entrusted to the CAG in public interest.According to the order, the lieutenant governor concluded that the objections raised by the discoms did not disclose any tangible grounds to oppose the audit and approved the CAG probe.Sood accused the previous Aam Aadmi Party (AAP) government of protecting the system rather than examining it, and said that the people of Delhi had the right to know how regulatory assets worth ₹38,000 crore kept growing and who benefited from them.Also Read I RJD’s power couple vacates bungalow, but shifts to own house“This CAG audit will bring out the facts. This is not just about looking into the past. This audit is the foundation for governance reforms in Delhi’s power sector. Its real success will be measured by the corrective actions, stronger regulation and greater accountability that follow,” he said.The AAP refused to comment on the matter.A BSES spokesperson, when asked about the CAG audit, said, “As the matter is under judicial consideration, it would not be appropriate to comment further.”Tata Power-DDL did not respond to queries for a comment.