HERC seeks more data from power utilities before tariff orders

Utilities have been asked to justify depreciation, loan costs and staffing, with additional public hearings planned across four districts.

The Haryana Electricity Regulatory Commission (HERC) has sought extensive additional financial, technical and operational data from the state’s power utilities, signalling closer scrutiny before finalising tariffs.

The regulator has not set a new deadline and may delay orders until cost, revenue and efficiency claims are fully examined. (Parveen Kumar/HT Photo)

As of now, the HERC has not set any revised deadline for issuing final tariff orders despite seeking additional data from power utilities. Regulatory experts, however, said delays in submitting the required information could defer tariff finalisation, as the Commission is unlikely to issue orders without fully scrutinising cost, revenue and efficiency claims.

In interim orders, the Commission stated that although public hearings for Haryana Vidyut Prasaran Nigam Limited (HVPN) and Haryana Power Generation Corporation Limited (HPGCL) have concluded, further examination is required to ensure prudence, transparency and consumer protection.

For HVPN, HERC directed submission of detailed information on World Bank loans availed since inception, including interest rates, foreign exchange variations and effective borrowing costs. It also asked HVPN to justify a projected rise in depreciation for FY 2026–27, provide details of capital works in progress, and outline capitalisation plans up to FY 2029–30. HVPN must also transfer retained earnings treated as equity to its capital reserve and examine loan swaps to reduce interest burden.

For HPGCL, the Commission sought a detailed breakup of FY 2024–25 employee data, including regular and contractual staff costs. It also requested an analysis of coal sampling agencies, coal quality claims over three years, generation performance data, working capital loan details, and explanations for hydropower plant non-availability despite sufficient water.

In the combined matters of Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), HERC observed that retail tariffs are identical across regions, necessitating a common regulatory approach. It clubbed petitions for the FY 2024–25 true-up, the FY 2025–26 mid-year review, and the FY 2026–27 revenue requirement for a single order.

Public relation officer, DHBVN, Sanjay Chugh said both discoms are directed to respond to stakeholder comments and submit additional information. “This includes details of power purchase agreements, renewable energy action plans, demand-side management measures, cost of supply data, loss projections, employee costs, subsidy reconciliation and proposals for the introduction of time-of-day tariffs,” he said.

The Commission will examine all submissions before issuing final orders. It announced additional public hearings in Gurugram and Hisar for DHBVNL and Panipat and Yamunanagar for UHBVNL between February and March for stakeholders to present views.