The CAG Report on the three private power distribution companies in Delhi has exposed the fraud practiced by them in collusion with the Sheila Dikshit Government and the Delhi Electricity Regulatory Commission (DERC). According to the Report, the people of Delhi have been overcharged by a whopping Rs. 8,000 crore. The three distribution companies – BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) controlled by Anil Ambani’s Reliance group, and Tata Power Delhi Distribution Ltd (TPDDL) — deliberately inflated costs, suppressed their actual revenues, made sweet heart deals with their group companies, etc, all of which was passed on to the consumers as inflated bills. This is a deliberate fraud carried out on the people of Delhi, leading to its high electricity tariffs.


The Aam Admi Government’s move in referring the private distribution companies to CAG has created the welcome precedent that such companies that are playing the role of public utilities, need to be brought under CAG purview.


The CPI(M) had opposed the privatisation of Delhi Electricity Supply Undertaking right from the outset and had expressed apprehensions about loot by private companies on precisely the lines that have now been uncovered by the CAG.


The CPI(M) demands that the Aam Admi Party government should take immediate steps for take over these utilities. Repeating the same exercise with other private players, as it is proposing can only be at the expense of the interests of the people of Delhi.


The State Government must immediately recover Rs. 8,000 crore from these private distribution companies that have cheated the Delhi consumers. These companies along with those in the previous government and DERC, who are guilty of connivance with them, must be proceeded against for fraud.


The CPI(M) will organize a protest demonstration at the office of the BSES Rajdhani Power Ltd at Nehru Place at 11 am on 20th August, 2015.