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Regulator puts private firm’s parallel power distribution licence for Nuh, Gurugram on hold
State govt had flagged its ‘grave concern’ to the HERC over licence to Eleven Power, stating it was ‘in complete deviation of present policy
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Accepting Haryana government’s direction “not to create or effectuate a parallel distribution licence” in the state, Haryana Electricity Regulatory Commission (HERC) on Wednesday decided “not to proceed further” with its October 19 order under which Eleven Power was granted electricity distribution licence for Gurugram and Nuh districts.
In their three-page order, HERC’s officiating chairman Mukesh Garg and member Shiv Kumar stated that in view of the Haryana government’s October 26 directions issued under Section 108 of the Electricity Act, 2003, the commission “has decided not to proceed further in the matter” till said directions of the state government “remain operative”.
This means that the next course of action before the Eleven Power, aggrieved by the HERC’s order, is to challenge it before the Appellate Tribunal for Electricity (ATEL), officials said.
The HERC’s October 19 order granting Eleven Power, a parallel electricity distribution licence for Gurugram and Nuh revenue districts triggered a massive backlash from power department employees. The licence was granted even as Haryana’s power distribution and transmission companies, power engineers, employee unions and public representatives raised objections.
This was for the first time in the country that a private entity was granted a distribution licence in any state.
The power department employees had gone on a three days strike last week, which they called-off after two days on Friday evening, after the state government agreed to invoke Section 108 of the Electricity Act, 2003 and directed HERC to revoke its decision.
In its order, the HERC stated that it received a communication on October 26 from Haryana government under Section 108(1) of the Electricity Act, 2003, “directing that no parallel distribution licence be created, operationalised or effectuated anywhere” in Haryana.
The Section 108 of the Electricity Act, 2003 says, “In the discharge of its functions, the state commission shall be guided by such directions in matters of policy involving public interest as the state government may give to it in writing. If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the state government there on shall be final.”
While issuing directions to the HERC, the government stated that it was “gravely concerned about the impact of the grant of a parallel licence on the consumers,” and held that licence was granted “in complete deviation of the present policy.”
“Accordingly, in view of the aforesaid directions issued by the government of Haryana under Section 108 of the Electricity Act, 2003, the commission has decided not to proceed further in the matter for so long as the said directions remain operative,” reads the HERC’s order.
According to Shailendra Dubey, chairman, All India Power Engineers Federation, this is a victory of Haryana power employees and engineers.
“It was for the first time that a power regulator granted a parallel licence to a private firm in any state. It was also for the first time that a state government directed the commission to stop issuing a parallel licence. We welcome HERC’s decision, rejecting Eleven Power’s plea, requesting hearing...and accepting government’s direction,” Dubey said.
HERC rejects firm’s plea
According to the order, HERC had granted a parallel distribution licence to Eleven Power for a period of 25 years for Gurugram and Nuh revenue districts. The private firm was directed to convey its willingness to accept the licence along with terms and conditions within one week after the licence was granted.
After receiving acceptance, the HERC was required to publish a public notice in newspaper having wider circulation in Gurugram and Nuh districts. The Eleven Power conveyed its acceptance of the distribution licence along with the terms and conditions stipulated therein on October 21.
The HERC stated that on October 23, Eleven Power intimated that it was taking necessary steps towards implementation of the licence. The firm further requested that advance intimation be given to it and sought an opportunity of hearing in respect of any proceedings, applications, representations or other matters concerning the licence that may be placed before the HERC.
In its latest order, the HERC rejected the firm’s plea for “advance intimation and an opportunity of hearing” in respect of any proceedings concerning October 19 order.
The HERC stated that it “considered” Eleven Power’s October 23 request for advance intimation and an opportunity of hearing in respect of any proceedings, applications, representations or other matters concerning the parallel licence order.
“...The directions (of government) dated October 26, 2026, have been issued in writing under Section 108(1) and apply generally throughout the state of Haryana. No adjudicatory exercise is left for the commission to undertake in giving effect to them, and no ‘lis’ is pending before it in which Eleven Power’s rights are to be determined afresh. In these circumstances, the commission finds no occasion for a hearing and rejects the request of EPPL for advance intimation and an opportunity of hearing,” the HERC stated.
