With CAG audit in court, DERC will look into discoms’ finances
According to the power regulator, discoms are actually never going to run into losses as the ‘load growth’ or the number of consumers taking power connections is increasing by an average of eight per cent every year in the Capital.delhi Updated: Oct 18, 2017 23:18 IST
As the CAG audit on discoms continues to be subjudice, the Delhi Electricity Regulatory Commission (DERC) has taken matters in its hand.
The power regulator is now going to appoint CAG empanelled auditors who will look into the expenses of all power distribution companies in the city. Sources said, the audit was “suggested” by the Delhi government under the DERC, Act.
“Tenders have been floated for financial audit of all the four discoms including the New Delhi Municipal Council. Some aspects that would be looked into include the quantum of power purchased by the utilities from different sources, tender-wise banking transactions, violations of cash receipts from consumers and so on,” a DERC official who is not authorised to speak to media said.
The move assumes significance as while revising the power tariff structure last month, the DERC had stated that the regulatory assets of discoms has reduced despite no tariff revision in the past two years. Regulatory assets are dues that have not been paid to the discoms and can be recovered from consumers by way of tariffs.
From around Rs 12,000 crore, the regulatory assets of discoms – Tata Power, BSES Rajdhani (BRPL) and BSES Yamuna Power Limited (BYPL) - have come down to Rs 9,400 crore. “This audit will tell us about the loopholes in the functioning of discoms and help us plug them,” the official said.
According to the power regulator, discoms are actually never going to run into losses as the ‘load growth’ or the number of consumers taking power connections is increasing by an average of eight per cent every year in the Capital.
Besides, the power utilities are already getting paid for their past dues in the form of an 8% surcharge that is charged on every electricity bill in Delhi.
In the past the DERC has conducted audit of physical assets of the discoms which mainly was restricted to the infrastructure set up by them and the cost involved in it.