Discoms move HERC seeking review of order granting parallel-distribution licence to Eleven Power

Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN), which together serve the state, filed the joint review petition on Tuesday, citing alleged technical errors and deficiencies in the commission’s original order

Haryana’s two state-owned power distribution companies have jointly filed a review petition before the Haryana Electricity Regulatory Commission (HERC), seeking reconsideration of its October 19 order granting a 25-year parallel electricity distribution licence to Eleven Power Private Limited (EPPL) for Gurugram and Nuh, officials said on Wednesday.

The move comes even as the Haryana Power Engineers’ Association (HPEA) and the All India Power Engineers Federation (AIPEF) have approached the Appellate Tribunal for Electricity (APTEL), filing caveats seeking a hearing before any order is passed on a challenge to HERC’s October 28 decision putting the licence process on hold.

Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN), which together serve the state, filed the joint review petition on Tuesday, citing alleged technical errors and deficiencies in the commission’s original order.

The October 19 decision had triggered a three-day strike by four power department unions, beginning at 10pm on October 21, leading to widespread blackouts across Haryana.

The strike ended on October 23 after chief minister Nayab Singh Saini assured employees that private players would not be allowed to enter the state’s power distribution sector. The government subsequently invoked Section 108(1) of the Electricity Act, 2003, directing HERC not to operationalise any parallel distribution licence in Haryana.

Acting on the directive, HERC on October 28 decided not to proceed further with the licence process as long as the government’s directions remained in force.

A senior DHBVN official said the review petition was necessary because the October 28 order had only suspended further proceedings without setting aside the original decision granting the licence.

“If the government withdraws its directions in the future, the order granting the parallel distribution licence could become operative. Therefore, the original order needs to be reviewed and reconsidered,” the official said.

The official said one of the principal objections concerned the capital investment required to establish and operate a parallel electricity distribution network in the two districts.

“HERC relied on estimates submitted by the private company instead of conducting an independent assessment of the investment required to establish and operate the distribution network,” the official said.

The petition also raises questions about compliance with minimum supply area requirements under the licensing regulations, the applicant’s financial capacity, beneficial ownership of shares and existing encumbrances on them.

The discoms have further questioned the technical and operational capabilities of the proposed consortium partners, their previous experience, procurement and project execution arrangements, and the availability of qualified technical personnel to operate the network, officials said.

HPEA general secretary Ravinder Ghanghas said the joint review petition and the caveats filed before APTEL were necessary to prevent legal loopholes from being exploited to facilitate the entry of private players into Haryana’s power distribution sector.

He said the government and unions would seek to defend HERC’s October 28 order before the appellate tribunal.

Ghanghas also urged the state government to take a clear policy decision on parallel distribution licences, warning that power department unions would launch another statewide protest if the government attempted to introduce privatisation.

Eleven Power did not respond to calls seeking comment on the matter.