New Delhi, Nov 12 (PTI) Government auditor CAG has started an integrated audit of 39 public sector DISCOMs, which will also include findings from consumer confidence surveys to be held across the country.
The integrated audit is envisaged to cover all major sub-segments of the power sector over the next four years -- generation, transmission, distribution and renewable energy.
Recognising the significant investments made in the power sector and its critical role in supporting the economic growth and development of the country, the Comptroller and Auditor General of India (CAG) has envisaged undertaking an integrated audit of the sector, a senior official said.
The performance audit on 'Operational and Financial Performance' will cover 39 public sector discoms across states and Union Territories. Five State/UT power departments too will be covered.
The audit reports are likely to be tabled in respective state legislatures during the second part of the next financial year.
Common policy issues and systemic deficiencies emerging from the state-level audit reports will also be consolidated and brought to the notice of the Ministry of Power at Union level for consideration and appropriate policy-level interventions.
"We have planned certain innovations in the audits. One of the focus areas will be a consumer satisfaction survey covering 10,000 respondents across the states and UTs to be covered," the official said.
Consumer satisfaction assessment is being undertaken to evaluate the quality of electricity services delivered by DISCOMs and the level of satisfaction among different categories of consumers, including domestic, industrial, commercial and agricultural consumers.
This would provide an important perspective on the actual outcomes of distribution-sector reforms from the consumer's standpoint, the official added.
In the first year, the distribution sector has been accorded priority, considering its direct interface with consumers and its significant implications on the functioning of other segments of the power sector and the wider economy.
DISCOMs are the interface between the power sector and consumers.
Stress in DISCOMs affects the reliability and affordability of power supply and spills over into State finances through subsidies, guarantees and equity support, so priority was accorded to the horizontal performance audit of their operational and financial performance, the official said.
Data indicated that the financial stress of DISCOMs is primarily rooted in weaknesses in procurement, demand forecasting, metering, regulatory accounting and consumer service.
According to official data, 41 DISCOMs earned aggregate profits of Rs 32,661 crore in 2024-25 and 23 incurred aggregate losses of Rs 29,959 crore.
As many as 24 had negative net worth and accumulated losses stood at Rs 3,41,609 crore.
Government grants (2020-21 to 2024-25) rose from Rs 1,07,739 crore to Rs 1,25,016 crore (16 per cent); revenue grants increased from Rs 55,544 crore to Rs 94,095 crore (69.4 per cent)
The official said that to ensure comprehensive coverage and avoid duplication of audit efforts, the audit of the Central Government's Revamped Distribution Sector Scheme (RDSS) has also been integrated with the audit of DISCOMs.
Another important area of focus is the examination of power procurement by DISCOMs, including procurement through power exchanges.
