DERC Initiates Intensive Audit of Delhi Discoms Through CAG-Empanelled CA Firm
The Delhi Electricity Regulatory Commission has initiated an intensive audit of Delhi discoms through a CAG-empanelled CA firm following Supreme Court directions over Rs 38,552 crore in regulatory assets and APTEL’s ruling against a direct CAG audit.
Verdicto News Desk 
NEW DELHI: The Delhi Electricity Regulatory Commission (DERC) has initiated the process for conducting an “intensive” audit of power distribution companies (discoms) in the national capital through a Comptroller and Auditor General (CAG)-empanelled chartered accountancy firm, officials said on Monday.
The development comes nearly a month after the Appellate Tribunal for Electricity (APTEL) set aside DERC’s earlier move to conduct the audit directly through the CAG.
DERC has floated a tender to appoint a CAG-empanelled chartered accountancy firm in compliance with the Supreme Court’s directions issued on August 6, 2025. The apex court had instructed the regulator to liquidate regulatory assets accumulated by discoms over the years.
The Supreme Court had also directed DERC to undertake a “strict and intensive audit” into the circumstances under which distribution companies continued operations without recovering the regulatory assets.
In April, APTEL quashed DERC’s application seeking a CAG-led audit, observing that it violated Section 20(3) of the CAG (Duties, Powers and Conditions of Service) Act, 1971.
The tribunal clarified that while the Supreme Court had ordered an intensive audit, it had not specifically directed that the audit be conducted by the CAG.
APTEL further stated that the issue of liquidation of regulatory assets was separate from the audit process. It noted that the Supreme Court-mandated audit was limited to examining the reasons behind the accumulation of regulatory assets and was not intended to be a comprehensive financial audit.
The tribunal also directed DERC to complete the audit process within three months from April 20.
Sources said DERC, which is responsible for implementing the Supreme Court’s order on liquidation of regulatory assets worth Rs 38,552 crore, may approach APTEL seeking additional time to initiate the process.
In an earlier order issued in April, the tribunal had granted DERC three weeks to begin the liquidation process.
According to DERC’s submission before APTEL in January, the total outstanding regulatory assets amount to Rs 38,552 crore. This includes Rs 19,174 crore owed to BSES Rajdhani Power Limited, Rs 12,333 crore to BSES Yamuna Power Limited, and Rs 7,046 crore to Tata Power Delhi Distribution Limited.
