In a setback for power sector reforms, the Haryana Electricity Regulatory Commission (HERC) has decided not to proceed further with the matter of the parallel distribution licence granted to Eleven Power Private Limited (EPPL) for Gurugram and Nuh, as per the directions of the state government.
On October 19, the Commission had allowed the grant of a parallel distribution licence to EPPL for a period of 25 years in respect of the Gurugram and Nuh revenue districts. Later, in a letter to the Commission, the state government said it was gravely concerned about its impact on consumers as well as on the public interest. The commission’s decision comes at a time the government is experimenting with parallel licensing amid muted progress in discom privatisation. Parallel licensing applications across the country have been gaining momentum over the past few months with Tata Power, Adani Electricity and Torrent Power applying for licensing in areas of Maharashtra, Karnataka, Chhattisgarh and Goa. Andhra Pradesh government has also given Google a deemed distribution licence for its 1 Gigawatt AI data centre hub near Visakhapatnam.
The Haryana government’s letter came on the back of widespread protests by employees of the government-run power distribution company, Dakshin Haryana Bijli Vitaran Nigam (DHBVN), which has so far had a monopoly on the power distribution network.
Considering the financial implications for the state government’s revenue, as well as consumer and public interest, the state government directed the Commission that no parallel distribution licence be created, operationalised or effectuated anywhere in the state.
“The Commission received a communication on October 26 from the Commissioner and Secretary to the Government of Haryana conveying the directions issued by the Government of Haryana directing that no parallel distribution licence be created, operationalised or effectuated anywhere in the State of Haryana,” the order issued on Wednesday said.
The directions apply generally throughout the state of Haryana, and no adjudicatory exercise is left for the Commission to undertake in giving effect to them, the order added. “In these circumstances, the Commission finds no occasion for a hearing and rejects the prayer of EPPL for advance intimation and an opportunity of hearing,” it further said.
Eleven Power has committed to supplying electricity on a non-discriminatory basis to all categories of consumers and to supplying electricity on request under Section 43 of the Act, releasing new connections within the timelines specified in the Commission’s Electricity Supply Code.
The private company also planned capital investment of Rs 4,717 crore over five years, to be deployed in phases between 2026-27 and 2030-31, with supply to consumers planned from 2027-28. It had also mentioned that the network would be built in phases over five years across all five divisions of the licence area, including Gurugram Suburban, Gurugram City, Manesar, Sohna and Nuh.
This move was expected to open up competition for the region’s over 8.3 lakh electricity consumers, including households, farms, shops, industrial units and offices, who would have been able to choose between two distribution licensees.
