'CAG audit will tell where the money went': Kejriwal on power tariff hike

Reacting to the hike in power rates, Delhi Chief Minister Arvind Kejriwal on Saturday said the Comptroller and Auditor General's (CAG) report on discoms would ascertain the lack of funds as stated by power distribution companies.

"They are saying they don't have funds. Where did all the money go? CAG audit will tell us where the money went. Let us wait for the report," he said.

Earlier on Friday, the Delhi Electricity Regulatory Commission (DERC) announced a hike in the power tariff ranging from 6 to 8 percent applicable from February 1 onwards.

According to press statement issued by the DERC, rates of BSES Yamuna were hiked by 8 percent, of NDPL by 7 percent and of BSES Rajdhani by 6 percent.

"The hike in power rates will be applicable for three months starting from February 1," the statement added.

Discom BSES Yamuna Power Ltd (BYPL) had earlier warned that it would be forced to resort to daily power cuts of up to 10 hours from February because it has no funds to pay public sector generation units for power supplies.

The Reliance-backed Discom has written to Delhi government saying it could lose over 500mw of supply if the generation units do not extend credit and give it more time to clear its dues.