The Haryana Electricity Regulatory Commission (HERC) has put the state's two power distribution companies under intense scrutiny, directing them to justify and elaborate on substantial government subsidies and explain massive revenue gaps. This move comes during the examination of their petitions for Aggregate Revenue Requirements (ARRs) for the upcoming financial year.
Subsidy Arrears and Revenue Gap Under Scanner
The regulator revealed a critical financial issue: approximately Rs 1,000 crore is pending as arrears from the distribution companies to the government. These arrears stem from subsidies announced under various state schemes that the discoms have not fully accounted for. The two utilities filed a combined ARR of around Rs 51,000 crore for the next financial year, projecting a significant revenue shortfall.
Beyond questioning the subsidy recovery gap, HERC has explicitly instructed the discoms to provide a detailed plan to overcome a projected revenue gap exceeding Rs 4,400 crore, as outlined in their ARR filings. This directive aims to ensure financial transparency and accountability in the state's power sector operations.
Specific Queries to Dakshin Haryana Bijli Vitran Nigam
In a pointed observation, the commission singled out Dakshin Haryana Bijli Vitran Nigam (DHBVNL). HERC demanded that DHBVNL file comprehensive details of a subsidy amounting to Rs 4,087 crore shown in its audited accounts. The regulator ordered the discom to reconcile this figure with the Rs 3,769 crore claimed in its petition and explain the reasons for this glaring discrepancy.
In its submission, DHBVNL stated that for the financial year 2024-25, it billed a subsidy of Rs 4,087.35 crore but received only Rs 3,428.09 crore from the government. The discom admitted that the reasons for this outstanding subsidy receivable are yet to be formally justified, highlighting a clear gap in fund flow and accounting.
Power Purchase and Generation Tariff Plans
The regulatory scrutiny extended to future power procurement costs as well. HERC has asked the discoms and the Haryana Power Purchase Committee to furnish details of the power purchase cost projected for the financial year 2026-27. They must provide all underlying assumptions and arrangements for these purchases.
Simultaneously, the Haryana Power Generation Corporation Ltd (HPGCL) sought the commission's approval for the generation tariff of its thermal power plants for FY 2026-27. HPGCL has placed a fixed cost requirement of Rs 1,960.34 crore before the regulator for consideration.
These hearings hold significant weight for Haryana's 84 lakh electricity consumers across various categories. The state's power utilities currently manage a total supply capacity of 17,000 MW per day. However, Haryana's own generation capacity is only about 2,582 MW, with the remaining power being secured through long-term and short-term power purchase agreements.
