Chandigarh: Directing the Haryana Electricity Regulatory Commission “not to create, operationalise or effectuate” a parallel distribution licence anywhere in the state, the state government said it is “gravely concerned” about the impact of HERC’s order granting a parallel licence to a private company for supplying electricity in Gurugram and Nuh.
Exercising powers under sub-section (1) of Section 108 of the Electricity Act, 2003, the Nayab Singh Saini-led BJP government agreed to intervene and issue directions to the HERC. This move is at the heart of Haryana’s power department employees calling off their three-day strike on Friday evening. Two days of the strike had hit power supply operations across the state.
While announcing that power department employees called off their strike, Saini said the government agreed to invoke Section 108 of the Electricity Act, 2003, and reiterated that “there will be no privatisation of electricity services.”
The two-page letter addressed to the HERC secretary, bearing signatures of the chief minister and energy minister Anil Vij reads: “Considering the financial implications on the revenue of she State government and the consumer interest as well as the public interest, the state government, as a matter of policy and to protect the interest of the consumers generally in the state, in exercise of the powers conferred by sub-section (1) of Section 108 of the Electricity Act, 2003, hereby directs the commission not to create, operationalise or effectuate a parallel distribution licence anywhere in Haryana.”
The letter says these directions have been issued with the approval of the chief minister and requests the HERC secretary to “bring these directions of the state government” under Section 108 to the “notice of the commission.”
{{/usCountry}}The letter says these directions have been issued with the approval of the chief minister and requests the HERC secretary to “bring these directions of the state government” under Section 108 to the “notice of the commission.”
{{/usCountry}}Well-placed HERC sources said on Saturday that they are yet to receive the government’s communication. “We may get the letter in question by Tuesday due to the weekend and holiday on Monday. Our office was already closed by the time the government announced its decision on Friday evening,” an HERC official said, asking not to be identified.
It was not immediately known if the government has officially despatched its missive to the HERC.
The HERC on October 19 granted Eleven Power Private Limited (EPPL) a parallel distribution licence under Section 14 of the Electricity Act, 2003 for the Gurugram and Nuh revenue districts where Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) is the existing distribution licencee.
The letter says HERC granted a distribution licence to EPPL after inviting objections from stakeholders, including DHBVNL and Uttar Haryana Bijli Vitran Nigam Limited, also called discoms, concerning EPPL’s financial capability, technical preparedness and ability to discharge its universal service obligation across the entire licensed area through the proposed phased development of the distribution network.
The government stated that HERC’s proposed decision to grant the licence was opposed on the grounds of non-compliance with statutory requirements, including minimum area of supply, capital adequacy, creditworthiness, technical capability and universal service obligations, etc. The government also said objections were raised regarding selective acquisition of high-revenue consumers, adverse impact on cross-subsidy, existing power purchase commitments, stranded costs, duplication of distribution infrastructure and the consequent financial burden on the incumbent distribution licensee and its consumers.
“The state government is presently not going into the correctness of the findings passed in the October 19 order by the commission,” the letter reads, pointing out that the government is “gravely concerned about the impact” of granting a parallel licence on the state’s consumers, as well as its impact on the public interest and that the order is in complete deviation of the present policy.