Chandigarh: Nine days after granting Eleven Power Private Limited (EPPL) a 25-year parallel electricity distribution licence for Gurugram and Nuh, the Haryana Electricity Regulatory Commission (HERC) has decided to halt its own order.
In an order dated 28 October, the commission said it has decided not to proceed further with the matter while the state government’s directions under Section 108 of the Electricity Act, 2003, remain in force. It also rejected EPPL’s request for advance notice and a hearing on any proceedings concerning the licence.
The decision follows written directions issued by the Haryana government on 26 October under Section 108(1) of the Act, asking HERC not to “create, operationalise or effectuate” a parallel distribution licence anywhere in the state. The Energy Department said the directions had the approval of Chief Minister Nayab Singh Saini.
Section 108(1) requires state electricity regulators to be guided by written government directions on policy matters involving public interest. Under Section 108(2), the state government’s determination of whether a question concerns such a policy matter is final.
The HERC order, signed by Officiating Chairman Mukesh Garg and Member Shiv Kumar, records that EPPL accepted the licence on 21 October, within the stipulated one-week period. On 23 October, the company informed the commission that it was taking steps to implement the licence and sought advance notice and a hearing in any proceedings concerning the 19 October order or the licence.
The commission rejected the request, stating that the government’s directions applied across Haryana and left “no adjudicatory exercise” for it to undertake. It added that no dispute was pending before it that required a fresh determination of EPPL’s rights. “The Commission finds no occasion for a hearing,” the order said.
Following the development, ThePrint has written to Eleven Power seeking comments on their next move. This report will be updated when the firm responds.
Caveat in order
The latest order does not cancel the licence or set aside the HERC’s 19 October decision. It only says the commission will not proceed for now. The licence stays on paper, but it cannot be put into effect while the directions hold.
On 19 October, HERC had granted EPPL a 25-year parallel distribution licence for the Gurugram and Nuh revenue districts, where Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) is the incumbent distributor. The licence would have allowed consumers to choose between the state-owned discom and a private supplier.
The state government’s letter, annexed to the HERC order, says it is “presently not going into the correctness” of the commission’s findings in the 19 October order. Instead, it raises policy and public-interest concerns, warning that a parallel licence could affect consumers and describing its grant as being “in complete deviation of the present policy”.
The letter also cites “agitation and apprehension” among consumers, farmers, members of the public and employees of state utilities following the decision. It also flags potential financial implications for the state government.
The HERC’s decision had faced opposition from state discoms, which argued that EPPL did not meet requirements relating to minimum area of supply, capital adequacy, creditworthiness and technical capability. They also warned that the private company could target high-revenue consumers, undermining cross-subsidies and leaving state utilities with stranded costs and existing power purchase commitments.
Power department employees, meanwhile, viewed the licence as privatisation by the back door. Around 40,000 employees and engineers launched a three-day strike on 22 October, disrupting electricity supplies in Gurugram, Faridabad, Nuh and several other districts. An estimated 10 lakh consumers were affected, as ThePrint reported.
On the evening of 23 October, employees called off the strike following a meeting with Energy Minister Anil Vij and Chief Minister Saini. Union representatives said the chief minister had informed them that the government had written to HERC recommending cancellation of EPPL’s licence.
The government and the unions are scheduled to meet again on 3 November to discuss their remaining demands.
Vij had earlier said the government had challenged HERC’s order before the Appellate Tribunal for Electricity and sought a stay. He first raised Section 108 as a possible avenue in a post on X on 23 October.
(Edited by Chingkheinganbi Mayengbam)