Parallel power distribution licences barred across Hry

With the state government directing the Haryana Electricity Regulatory Commission (HERC) “not to create, operationalise or effectuate” a parallel distribution licence anywhere in Haryana, a petition by a conglomerate seeking a parallel-distribution licence for Faridabad, Palwal, Sonipat, Panipat and Karnal is infructuous, an official said on Saturday

With the state government directing the Haryana Electricity Regulatory Commission (HERC) “not to create, operationalise or effectuate” a parallel distribution licence anywhere in Haryana, a petition by a conglomerate seeking a parallel-distribution licence for Faridabad, Palwal, Sonipat, Panipat and Karnal is infructuous, an official said on Saturday.

The Eleven Power Private Limited (EPPL), a firm formed last year, had filed a petition before the HERC earlier this year for a parallel-distribution licence in Gurugram and Nuh. (Bloomberg)

The Eleven Power Private Limited (EPPL), a firm formed last year, had filed a petition before the HERC earlier this year for a parallel-distribution licence in Gurugram and Nuh. As the hearing on EPPL’s petition was coming to an end, another firm filed a petition before the commission seeking a parallel distribution licence for five other districts of Haryana.

“After the government decides to use special provisions of Section 108 of the Electricity Act, 2003 to override the HERC’s decision to grant a parallel-distribution licence, there is no question that any other private firm will get any kind of permission to enter the state’s power sector,” the official said, who did not wish to be named.

Haryana energy department officials said the other petition on parallel-distribution licence was yet to be listed for hearing as the unions went on a strike.

“Considering the financial implications on the revenue of the 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,” reads the letter issued to HERC.

However, an official familiar with the matter said the commission is yet to receive the letter. “We may get the letter 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,” the official said, asking not to be identified.

On October 19, the HERC granted 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 licensee.

The HERC said it granted a distribution licence to EPPL after inviting objections from stakeholders, including DHBVNL and Uttar Haryana Bijli Vitran Nigam Limited, 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 said it opposed HERC’s proposed decision to grant the licence on the grounds that it did not comply with statutory requirements, including minimum area of supply, capital adequacy, creditworthiness, technical capability, and universal service obligations.

“The state government is presently not going into the correctness of the findings passed in the October 19 order by the commission,” the letter read.