Mumbai electricity consumers will have to wait for an audit by the Comptroller & Auditor General (CAG) for their distributors namely Tata Power and Reliance Infrastructure as the Congress led government in the state has not taken any formal decision in this regard.
The state government has so far not indicated its plan to adopt Aam Aadmi Party led government's model of conducting CAG audit for Mumbai power companies.
Reliance Infrastructure has a consumer base of over 2.8 million while Tata Power with .42 million consumers. When contacted Tata Power and Reliance Infrastructure declined to comment.
A state government official, who did not want to be identified, told "Currently, Tata Power and Reliance Infrastructure carry out their annual audits by deploying leading audit firms. There is no proposal as of now before the government to order CAG audit of these two companies for their Mumbai operations.''
However, the official admitted that CAG audit of these companies can be possible under section 20 of the CAG Act, 1971 which regulates the audit of accounts of authorities or bodies that are otherwise not subject to audit by the CAG.
Section 20 reads "'The Comptroller and Auditor-General may propose to the President or the Governor of a State or the Administrator of a Union territory having a Legislative Assembly, as the case may be, that he may authorised to undertake the audit of accounts of any body or authority, the audit of the account of which has not been entrusted to him by law, if he is of opinion that such audit is necessary because a substantial amount has been invested in."
Central Electricity Regulatory Commission's (CERC) former chairman Pramod Deo said CAG audit of Tata Power and Reliance Infrastructure can be done. He however, added that the state government will have to take a call in this regard.
Ashok Pendse, consumer representative at the Maharashtra Electricity Regulatory Commission shared Deo's views saying that CAG audit of Tata Power Reliance Infrastructure will be a reality. ''However, at the end of the day what will come out of CAG audit should not be like what atually appears out of magician's hat,'' he noted.
D Radhakrishna, power analyst said CAG audit should be carried out of the generating companies as in the power supply the contribution of Discoms is only limited to 20% but remaining 80% cost attributed to the generation and transmission.
''Thus CAG audit for Mumbai power companies can be done as per Sec 20 of CAG Act 1971. The state government can order such audit,'' he added.
Source: Business Standard
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