New Delhi, May 18 (PTI) 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 Supreme Court on August 6, 2025. The court in its order directed DERC for liquidation of 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.

It also held that the issue of liquidation of regulatory assets was not related to the audit of discoms.

The audit directed by the Supreme Court was limited to examination of the circumstances leading to accumulation of regulatory assets and not a comprehensive financial audit, the APTEL noted, directing DERC to complete the audit within three months from April 20.

The DERC which has to implement the Supreme Court order for liquidation of regulatory assets worth Rs 38,552 crore of discoms, is likely to approach APTEL seeking more time to start the process, sources said.

The tribunal in its previous order in April, had given three weeks time to the DERC to start the liquidation process.

According to DERC's submission to APTEL in January this year, the total outstanding regulatory assets stand at Rs 38,552 crore, including Rs 19,174 crore of BSES Rajdhani Power Limited, Rs 12,333 crore of BSES Yamuna Power Limited and Rs 7,046 crore of Tata Power Delhi Distribution Limited. PTI VIT ARB ARB

Intensive audit of power discoms follows court directions on regulatory assets and limited audit scope. The Delhi Electricity Regulatory Commission has initiated an intensive audit of Delhi distribution companies through a CAG-empanelled chartered accountancy firm after issuing a tender in line with Supreme Court directions. The audit is tied to the liquidation of accumulated regulatory assets and is confined to examining the circumstances in which the distribution companies continued without recovery of those assets, rather than a comprehensive financial audit. The process follows the Appellate Tribunal for Electricity's ruling that the earlier proposal for a CAG-conducted audit was not required by the Supreme Court and was contrary to the governing framework.