The Comptroller and Auditor General of India (CAG) has initiated a nationwide assessment of the financial and operational performance of 39 state-owned electricity distribution companies (DISCOMs), along with five government departments involved in power distribution.
The exercise will examine the financial position of distribution utilities, their electricity procurement practices and the quality of services provided to consumers.
Private distribution companies have been kept outside the scope of this audit.
The review comes against the backdrop of continuing financial difficulties in the distribution segment.
According to data cited in the CAG’s presser, 24 DISCOMs had negative net worth as of March 2025, while their accumulated losses stood at Rs 3.41 lakh crore.
Their outstanding borrowings amounted to Rs 7.26 lakh crore, resulting in an annual interest burden of Rs 77,653 crore.
The audit will also examine demand forecasting, metering, billing, revenue collection and aggregate technical and commercial (AT&C) losses.
Particular attention will be given to short-term electricity purchases and transactions through power exchanges.
The national average AT&C loss stood at 15.04 per cent in FY2024-25, while 27 DISCOMs failed to meet the prescribed benchmarks.
The findings will be submitted to the respective state legislatures, while common shortcomings identified during the exercise will be shared with the Ministry of Power for consideration of policy measures.
