New Delhi, May 27, 2026 – Two major power distribution companies (Discoms) in the National Capital Territory (NCT) of Delhi, BSES Rajdhani Power Limited and BSES Yamuna Power Limited, have filed an application with the Delhi Electricity Regulatory Commission (DERC) seeking a correction to a previous order. The application, filed under Section 121 of the relevant act, aims to clarify the scope of a quashed approval for a CAG audit, specifically requesting the substitution of a phrase in a prior order dated April 20, 2026.
Context of the DERC Order
The application stems from an order issued by the DERC in Original Petition (OP) No. 1 of 2025. This order, dated April 20, 2026, appears to have addressed a situation involving a proposed audit by the Comptroller and Auditor General (CAG) of India. The Discoms’ current filing suggests an ambiguity in how the original order’s decision to ‘quash’ certain approvals was phrased.
Discoms’ Prayer for Modification
BSES Rajdhani Power Limited and BSES Yamuna Power Limited are requesting a modification to Para 39 of the April 20, 2026 order. They specifically ask to replace the existing text, “… quash the approval to such audit accorded by the Ld. Governor of Delhi vide communication dt. 05/03/2026,” with a revised statement: “….. quash DERC’s initiation of the CAG audit and DERC’s request to the CAG and GoNCTD and other consequential actions taken in this regard.” This indicates the Discoms believe the original order’s intent was to quash the DERC’s own actions related to initiating the audit, rather than solely the Governor’s approval.
Understanding the Audit Dispute
The core of the issue lies in the DERC’s role in initiating or facilitating an audit by the CAG. Audits by the CAG are typically conducted on government bodies and public sector undertakings to ensure accountability and efficient use of public funds. In the context of regulated entities like power Discoms, such audits can scrutinize financial operations, efficiency, and compliance with regulations.
The Discoms’ request suggests they are seeking to ensure that the DERC’s actions in proposing or requesting the CAG audit are the subject of the quashed approval, rather than any preceding approval from the Governor of Delhi. This distinction is crucial for understanding the liabilities and responsibilities of the Discoms and the regulatory body.
Potential Implications for Stakeholders
If the DERC accepts the Discoms’ prayer, it would clarify that the regulatory commission’s own initiation and requests for the CAG audit were deemed inappropriate or erroneous, and subsequently quashed. This could shield the Discoms from scrutiny stemming directly from the DERC’s procedural steps in commissioning the audit.
Conversely, if the original order was intended to quash the Governor’s approval, the Discoms might have been seeking to overturn a specific administrative decision that allowed the audit. The modification sought by the Discoms shifts the focus to the DERC’s procedural actions.
What to Watch Next
The DERC’s decision on this application will be critical. It will determine the precise scope and impact of the April 20, 2026 order regarding the CAG audit. Stakeholders will be watching to see if the DERC accepts the Discoms’ interpretation, which could set a precedent for how regulatory bodies initiate and manage audits of utility companies. Any further developments regarding CAG audits of Delhi’s power sector will also be closely monitored.
