The Haryana Electricity Regulatory Commission (HERC) has decided to seek an independent expert assessment of the legal, technical, financial, commercial and regulatory issues involved in the proposed grant of a power distribution licence for Gurugram and Nuh districts to a private firm, Eleven Power Private Ltd.
Background of the Case
The case stems from an application filed by Delhi-based Eleven Power Private Ltd seeking a parallel distribution licence in Gurugram and Nuh. The Haryana government had earlier moved to grant such a licence, which drew objections from several quarters, including Indian National Lok Dal national patron and former finance minister Prof Sampat Singh. Singh argued that the move would effectively transfer government infrastructure and revenue into private hands, which would not serve public interest.
Commission's Decision
After hearing both sides and considering the pleadings on record, HERC, keeping in view the long-term implications for the electricity sector and its potential impact on consumers, decided to seek an independent expert assessment. The commission noted that the matter involves complex issues that require specialised evaluation.
HERC has constituted a three-member committee comprising Alok Nigam, Ravinder Kumar Sharma and Bibhu Prasad Mahapatra, all of whom possess extensive experience and expertise in the electricity sector. The committee will examine the petition, the replies filed by the respondents, and the comments and objections submitted by the interveners.
Scope of the Expert Assessment
The committee will submit a comprehensive report on whether the petitioner qualifies for the grant of a parallel distribution licence in Nuh and Gurugram while complying with the requirements prescribed under the relevant Electricity Act and the Haryana Electricity Regulatory Commission (Transmission and Distribution Licensing) Regulations. The assessment will cover all legal, technical, financial, commercial and regulatory aspects of the proposal.
Timeline and Next Steps
The committee will begin its work from July 13 and submit its report within 15 days for further proceedings. Meanwhile, the petitioner has been directed to file its response to the comments submitted by the interveners and a rejoinder to the replies filed by the respondents within seven days from the date of issue of the order. The respondents have also been allowed to file their written submissions within seven days from the date of issue of the order.
According to Prof Sampat Singh, the privatisation of power distribution in these districts could lead to higher tariffs and reduced accountability, ultimately harming consumers. The expert assessment is expected to provide clarity on these concerns and guide the regulatory process.
