Haryana Consumers Brace for Another Power Tariff Increase
Residents and businesses in Haryana might soon face higher electricity bills. The state's power distribution companies are pushing for a significant tariff hike for the upcoming financial year.
Regulator Reviews 15-17% Increase Proposals
The Haryana Electricity Regulatory Commission is currently examining detailed proposals from two major power utilities. Dakshin Haryana Bijli Vitran Nigam and Uttar Haryana Bijli Vitran Nigam have requested tariff increases ranging from 15 to 17 percent for the 2026-27 fiscal period.
Commission officials confirm they are studying these submissions carefully. They expect to reach a final decision before April 1, when the new financial year begins.
Discoms Cite Growing Financial Pressure
The power companies argue they need higher rates to address substantial revenue shortfalls. Their combined Annual Revenue Requirement projections approach approximately Rs 51,000 crore. After accounting for expected income and government subsidies, they report a revenue gap exceeding Rs 4,000 crore.
Several factors contribute to this financial strain according to utility filings:
- Rising power purchase costs from generation companies
- Increasing transmission and distribution expenses
- Delayed subsidy reimbursements for agricultural and rural consumers
Based on current proposals, domestic, commercial, and industrial consumers could see the steepest increases. Smaller hikes around 5 percent might apply to categories like private tube wells and electric vehicle charging stations, though these numbers remain preliminary.
Recent History of Tariff Adjustments
This potential hike follows relatively stable electricity prices in recent years. Tariffs remained largely unchanged from 2017-18 until last year. In April 2025, the commission approved an increase of 20-30 paise per unit across various consumer categories.
That adjustment translated to an effective one-time rise of 7-9 percent for domestic users depending on consumption slabs. Despite this recent increase, Haryana's average annual tariff growth over the past decade remains modest at roughly 1 percent or less when calculated over the full period.
Regulator Exercises Caution Amid Scrutiny
The electricity commission has not yet endorsed the proposed increases. Officials indicate HERC has requested additional data and clarifications from the distribution companies. The regulator is particularly focused on subsidy claims, projected costs, and detailed justifications for revenue gaps.
During recent hearings, commission members emphasized financial prudence. They directed utilities to thoroughly justify their assumptions before passing any burden to consumers. The regulator also highlighted the need for improved operational efficiency, specifically mentioning:
- Reducing Aggregate Technical and Commercial losses
- Strengthening billing and collection systems
- Ensuring reliable power supply across the state
Political and Public Opposition Emerges
The tariff hike proposal has already sparked resistance. Former Haryana power minister Prof Sampat Singh has approached the commission with formal objections. He alleges procedural lapses and insufficient transparency in the tariff-filing process.
The former minister questions the justification for large projected deficits. He demands deeper scrutiny of capital expenditure plans, arguing that inefficiencies should not be compensated through higher consumer tariffs.
Consumer groups and resident welfare associations echo these concerns. They note that structural changes introduced in 2025, including revised fixed charges, have already increased electricity bills for many households. Even modest per-unit hikes have resulted in noticeable bill increases for some consumers.
Broader Economic Context
This potential tariff increase comes during broader inflationary pressures. Households across Haryana already face rising expenses for essential goods and services. While power utilities argue tariff rationalization is necessary for financial sustainability and uninterrupted supply, critics warn sharp increases could strain domestic budgets and affect industrial competitiveness.
Regulatory experts suggest several possible outcomes. The commission might moderate the proposed hike, stagger increases over time, or even delay the final tariff order. These decisions will depend on how satisfactorily the distribution companies address queries about losses, subsidies, and efficiency targets.
The coming weeks will prove crucial as Haryana's electricity regulator balances utility financial needs with consumer protection concerns. All stakeholders await the commission's final determination on this significant matter affecting millions of power consumers across the state.
