"The allegations are a bundle of lies," Chief Minister Sheila Dikshit's office said.
Kejriwal alleged that power distribution companies in the capital "fudged" their records and "committed fraud" to show losses in their revenue while actually making profits.
The Aam Aadmi Party chief also claimed that Delhiites are paying two times the electricity bills they should actually be paying. He accused Dikshit of stopping the Delhi Electricity Regulatory Commission (DERC) from passing an order in 2010 which recommended 23 per cent reduction in the tariff.
Discoms BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd in a joint statement said the "allegations posed are completely baseless, wild and highly deplorable for the power sector. The issues raised have no relation whatsoever with the ground realities and are meant for personal gains."
Rejecting the allegations, the Government said the Delhi High Court had in an order had said the it did not have an ounce of doubt that no such order was made.
"It (the High Court) said that 'approval by one Member or the other on the file does not result in making of the tariff order.' Key legal requirements like placing the matter before the Commission and deliberations on it had not happened. Therefore to refer to it as an order is a gross distortion of reality," the government said in a statement.
"The so-called tariff order was nothing but the personal opinion of the then Chairman based on false assumptions," it added. MORE