HERC halts Eleven Power's parallel distribution licence for Gurugram, Nuh

HERC has halted the parallel distribution licence granted to Eleven Power for Gurugram and Nuh following state government directions, raising concerns over power sector reforms.

In a setback for power sector reforms, the Haryana Electricity Regulatory Commission (HERC) has decided not to proceed further in the matter of 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 that it was gravely concerned about its impact on both consumers and the public interest.

  

The Commission's decision comes at a time when 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 licences in areas of Maharashtra, Karnataka, Chhattisgarh, and Goa. The Andhra Pradesh government has also given Google a deemed distribution licence for its 1 gigawatt artificial intelligence (AI) data centre hub near Visakhapatnam.

 

The Haryana government's letter came on the back of widespread protests by the employees of the government-run power distribution company, the Dakshin Haryana Bijli Vitaran Nigam (DHBVN), which has so far had a monopoly on the power distribution network.

 

Considering the financial implications on the revenue of Haryana and consumer and the public interest, the state government directed 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.

 

EPPL had committed to supply electricity on a non-discriminatory basis to all categories of consumers, and to supply on request under Section 43 of the Electricity Act, 2003, releasing new connections within the timelines specified in the Commission’s Electricity Supply Code.

 

The private company also planned for capital investment of ₹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 will be built in phases over five years across all the five divisions of the licence area: 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, who would have been able to choose between two distribution licensees.