Haryana Power DISCOMs Propose Major Changes to Fuel Surcharge Recovery System
In a significant development affecting electricity consumers across Haryana, the state's two primary power distribution companies have formally approached the regulatory authority seeking amendments to existing rules governing cost recovery mechanisms. The Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) have jointly filed petitions with the Haryana Electricity Regulatory Commission (HERC) requesting modifications to the current framework for recovering the Fuel and Power Purchase Adjustment Surcharge (FPPAS).
Proposed Changes to Monthly Recovery System
The DISCOMs have specifically requested relaxation of Regulation 68 under the Multi-Year Tariff (MYT) Regulations, 2024, applicable for the upcoming financial year 2025-26. Under the existing system, additional costs incurred due to fluctuations in fuel prices and power procurement expenses are recovered from consumers on a monthly basis through the FPPAS mechanism.
The utilities have proposed a substantial departure from this current practice. Instead of monthly recovery, they have suggested deferring the collection of these additional costs to subsequent financial years. The proposed alternative would involve recovering the accumulated amount at a uniform rate of 47 paise per unit across all consumer categories, regardless of their consumption patterns or tariff slabs.
Additionally, the power companies have sought permission to include carrying costs – essentially interest charges – to ensure systematic recovery of deferred dues over time. This aspect of the proposal aims to address the financial implications of postponing revenue collection while maintaining the operational viability of the distribution utilities.
Regulatory Commission Emphasizes Transparency and Public Participation
The Haryana Electricity Regulatory Commission has adopted a cautious approach to these significant proposals. Rather than making an immediate decision, the commission has emphasized the importance of transparency and stakeholder consultation in matters that directly impact electricity consumers across the state.
"The Commission has made it unequivocally clear that any decision affecting consumers will be taken only after comprehensive consideration of public and stakeholder perspectives," stated an official familiar with the proceedings. This commitment to participatory governance reflects the regulatory body's dedication to balancing utility requirements with consumer protection.
Public Hearing Scheduled for May 14
To facilitate this consultative process, HERC has issued a formal public notice inviting objections and suggestions from all concerned parties. Any individual, consumer group, industry association, or organization wishing to support or oppose the DISCOMs' petitions may submit written comments to the commission by May 1, 2025.
The regulatory body has scheduled a comprehensive public hearing on May 14, 2025, at 11:30 a.m. in its courtroom located in Panchkula. All stakeholders who submit their objections or suggestions within the stipulated timeframe will be granted an opportunity to present their views directly before the commission during this hearing.
Through this transparent process, HERC will thoroughly assess the merits of the DISCOMs' proposal, examining its potential impacts on both the financial stability of power utilities and the economic interests of electricity consumers. The commission's primary objective remains striking an appropriate balance between ensuring the operational viability of power distribution companies and protecting consumers from unreasonable tariff burdens.
This development comes at a time when power utilities nationwide are grappling with the challenges of rising fuel costs, increasing power purchase expenses, and the need to maintain reliable electricity supply while managing consumer tariff expectations. The outcome of HERC's deliberations on this matter could establish important precedents for how regulatory bodies across India approach similar issues in the future.
