CAG (Comptroller and Auditor General of India) had found the theft of electricity companies in Delhi. CAG found that power companies have shown their losses of Rs 8,000 crore. CAG has also said that there is space of cheap electricity in Delhi.
CAG Discoms Report Found Fraud Of Rs 8000 Crore
The 212-page confidential report, accessed by TOI, has indicted the three power distribution companies — BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) controlled by Anil Ambani’s Reliance group, and Tata Power Delhi Distribution Ltd (TPDDL).
Its most damning revelation relates to inflation of regulatory assets (RA) — previously-incurred losses that can be recovered from consumers if permitted by the regulatory authority.
“The RA of three discoms which stood approved as on March 31, 2013, were Rs 13,657.87 crore. However, audit findings contained in various chapters of this report indicate that the RA of the three discoms were inflated by at least Rs 7956.91 crore,” the report says.
Implementation of the audit findings could lead to a dramatic reduction in the financial liabilities of the discoms, resulting in a significant reduction in the burden on consumers.
The report also raises questions over the conduct of Delhi Electricity Regulatory Commission (DERC) and government nominees on the board of the three discoms.
The CAG audit endorses the claims of the Aam Aadmi Party and other activists that high power tariffs in Delhi were unjustified. The 49-day-old AAP government led by Arvind Kejriwal had ordered the special CAG audit of the power sector on January 1, 2014.
Now, let’s wait and watch what happens next.
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