Responses from consumer to be part of audit of discoms by C&AG

CAG Widens Audit Net To Discoms

The Comptroller and Auditor General has begun an integrated audit of 39 State-owned power distribution companies, and for the first time consumer responses will form part of the exercise. An official said the audit will include a consumer satisfaction survey covering 10,000 respondents across the States and Union Territories being examined. The survey is intended to assess the quality of electricity services delivered by discoms and the satisfaction levels of domestic, industrial, commercial and agricultural consumers, offering a view of distribution-sector reforms from the consumer's side.

The integrated audit is designed to span all major sub-segments of the power sector over four years, covering generation, transmission, distribution and renewable energy. Distribution has been given priority in the first year because of its direct interface with consumers and its knock-on effects on other segments and the wider economy. Discoms sit between the power sector and consumers, and stress in these utilities affects the reliability and affordability of supply and spills into State finances through subsidies, guarantees and equity support. Audits of the Centre's Revamped Distribution Sector Scheme have been merged into the discom audit to avoid duplication, and power procurement, including purchases through power exchanges, is another focus area.

Why It Matters For Businesses

The audit's findings will shape how discom finances, tariffs and subsidy flows are scrutinised in the coming years. Official data cited in the report show that 41 discoms earned aggregate profits of ₹32,661 crore in 2024-25 while 23 incurred aggregate losses of ₹29,959 crore. Twenty-four had negative net worth, with accumulated losses at ₹3,41,609 crore. Government grants rose from ₹1,07,739 crore to ₹1,25,016 crore between 2020-21 and 2024-25, a 16 per cent increase, while revenue grants climbed from ₹55,544 crore to ₹94,095 crore, up 69.4 per cent. The official a…