DERC audit of Delhi discoms by CA firm

The Delhi Electricity Regulatory Commission (DERC) has initiated the process for “intensive” audit of power discoms in the Capital by a CAG-empanelled chartered accountancy firm, officials said on Monday.  The move comes nearly a month after the Appellate Tribunal for Electricity (APTEL) quashed its move for the audit of discoms by the Comptroller and Auditor General (CAG).

The DERC has floated a tender for engaging a CAG-empanelled chartered accountancy (CA) firm in line with the directions of the Supreme Court on August 6, 2025. The court, in its order, directed DERC to liquidate regulatory assets accumulated over the years to the discoms.

The SC also directed DERC to undertake a “strict and intensive audit” of the circumstances in which the distribution companies have continued without recovery of the regulatory asset.  Last month, APTEL quashed DERC’s application to undertake an audit of discoms by CAG, pointing it violated Section 20(3) of the CAG (Duties, Powers and Conditions of Service) Act, 1971.

APTEL said the Supreme Court had directed for an intensive audit of discoms without specifying that it should be conducted through CAG.