Delhi Discoms BRPL, BYPL, TPDDL operate as 51:49 joint ventures between private players and Govt

Delhi discoms — BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL) — are joint venture companies, held on a 51:49 basis between the private promoters and the Government of Delhi (GoNCTD). The Delhi Government is a 49 per cent owner all these three companies.

The three discoms power around 7.5 million consumers across the national capital. Over close to 25 years, the discoms have emerged among India’s best-performing distribution utilities — delivering a record reduction in AT&C losses, alongside sustained improvements in reliability, consumer service and operational efficiency.

The Government of Delhi, over the years, has maintained direct representation on the Boards of these companies through its senior functionaries, including the Chief Secretary, the Finance Secretary and the Power Secretary. Every material decision of the companies’ is taken by the respective Boards comprising nominees of the Delhi Government.

The accounts of these discoms have been audited by CAG-empanelled auditors for close to 25 years. These auditors are appointed by the respective Boards and the DERC is informed of these appointments. The companies’ finances are under full regulatory scrutiny.

Power distribution is a highly regulated business with robust checks and balances. All financial and operational aspects of the discoms are subject to the continuous oversight of DERC and other statutory authorities. As responsible organisations, Delhi discoms adhere to the highest standards of corporate governance, accountability, integrity and transparency.

The CAG will undertake a “strict and intensive” audit of the circumstances under which discoms — BSES Rajdhani Power Ltd (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution (TPDDL) — have continued without recovery of regulatory assets, according to an order issued by the Power Department of the Delhi Government on Wednesday. This is the first time that the power discoms will go through a CAG audit in Delhi since the privatisation of electricity distribution in 2002 if they do not take legal recourse. An earlier attempt at a CAG audit of discoms by the then AAP Government was thwarted by the High Court in 2015.

RAs refer to deferred expenses borne by the discoms out of changes in fuel costs. These are determined as the gap between the average cost of supply by the discoms and the revenue collected by them through tariffs and subsidies.

The Delhi Cabinet, in its meeting chaired by Chief Minister Rekha Gupta on June 29, recommended, in public interest, “a strict and intensive” CAG audit of the circumstances in which the discoms have continued without recovery of the regulatory assets, said the order.