Delhi power distribution companies (discoms) have urged the Delhi government to take over management of surplus power. The move followed allegations that state discoms are selling surplus power to group companies at below-market rates.

BSES Rajdhani Power CEO Gopal K Saxena wrote a letter to Delhi power secretary Puneet Goel, stating that discoms sell surplus power through transparent mechanisms like power exchanges, trading and banking arrangements and unscheduled interchange.

Mr. Saxena added that all transactions were accounted by the state load dispatch centre in compliance with the regulator's guidelines.

He described consumer groups' accusations of selling a surplus 1,000MW of electricity to group companies at below-market prices to suppress profits as 'baseless' allegations.

In the letter to the power secretary, Mr. Saxena wrote, "In the interest of transparency and to avoid baseless allegations …, the BSES discoms request the Delhi government to take over the entire responsibility for ensuring adequate power to meet the peak demand and sell off-peak power in the most optimal manner."

Mr. Saxena also stressed that the discoms they couldn't be held responsible for terms of the power purchase agreements (PPAs) that were signed by the erstwhile Delhi Vidyut Board prior to its privatization in 2002.

Meanwhile, a team of CAG officials is preparing to conduct the physical audit of discoms' accounts and finances. This is going to be the first CAG visit to the offices of BSES Rajdhani, BSES Yamuna and Tata Power Delhi.