Demand for CAG audit of power firms grows
4 Feb 2013 7:53 AM IST
With the power tariff in the national capital likely to be revised, the need for CAG audit of Power Distribution companies (Discoms) like BSES Rajdhani, BSES Yamuna Power Limited and North Delhi Power limited (NDPL) by the Comptroller and Auditor General of India (CAG) is being increasingly felt. On one hand, the above companies claim huge losses, on the other hand, consumers feel Delhi’s power distribution companies fudge and manipulate records.
The power companies have recently proposed to the Delhi government to recommend a hike in tariffs or alternatively announce relief in the form of a bailout package.
Whenever these power consumers raise their voices for auditing records of the Discoms by the CAG, their demand is stonewalled. This has been done despite the Delhi cabinet passing a resolution some years back for allowing CAG audit of these companies.
Right from the start, members of Resident Welfare Associations (RWAs) have been demanding that all power companies must be audited by CAG. In view of RWA demands, the Delhi cabinet had decided on 26 December, 2011 that the CAG should audit Discoms from the inception. The Discoms went to court against the cabinet order and the matter is now sub judice in the Delhi High Court.
Chief Executive Officer of NDPL Raveen Sinha, when asked to comment on the matter, said by this logic every private company should be audited by the CAG. On being pointed out that NDPL came in the category of government undertakings, as the Delhi government held 49 percent share in each private distribution company, he insisted that Discoms were private companies not covered by the CAG audit.
The BSES (Rajdhani and Yamuna) officials refused to comment on this issue. They said that since the matter was sub judice and they were not in a position to give any response. Power consumers have repeatedly blamed Discoms of showing inflated losses, especially BSES (Rajdhani and Yamuna) which have allegedly bought equipment from their sister concern Reliance Energy Limited (REL), paying higher than market rates. Similarly BSES is accused of buying power at high rates and selling it at much lower rates to its sister unit, Reliance Energy Trading Limited.
The power companies have recently proposed to the Delhi government to recommend a hike in tariffs or alternatively announce relief in the form of a bailout package.
Whenever these power consumers raise their voices for auditing records of the Discoms by the CAG, their demand is stonewalled. This has been done despite the Delhi cabinet passing a resolution some years back for allowing CAG audit of these companies.
Right from the start, members of Resident Welfare Associations (RWAs) have been demanding that all power companies must be audited by CAG. In view of RWA demands, the Delhi cabinet had decided on 26 December, 2011 that the CAG should audit Discoms from the inception. The Discoms went to court against the cabinet order and the matter is now sub judice in the Delhi High Court.
Chief Executive Officer of NDPL Raveen Sinha, when asked to comment on the matter, said by this logic every private company should be audited by the CAG. On being pointed out that NDPL came in the category of government undertakings, as the Delhi government held 49 percent share in each private distribution company, he insisted that Discoms were private companies not covered by the CAG audit.
The BSES (Rajdhani and Yamuna) officials refused to comment on this issue. They said that since the matter was sub judice and they were not in a position to give any response. Power consumers have repeatedly blamed Discoms of showing inflated losses, especially BSES (Rajdhani and Yamuna) which have allegedly bought equipment from their sister concern Reliance Energy Limited (REL), paying higher than market rates. Similarly BSES is accused of buying power at high rates and selling it at much lower rates to its sister unit, Reliance Energy Trading Limited.
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