In a significant move, former Haryana power minister Prof Sampat Singh has approached the Haryana Electricity Regulatory Commission (HERC), formally objecting to the tariff and revenue proposals submitted by the state's two power distribution companies. The petition targets the filings made by Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) for the coming financial years.
Core Allegations: Missing Studies and Unjustified Hikes
The legal filing contests the discoms' requests for approval of the True-Up for FY 2024-25, the Annual Performance Review (APR) for FY 2025-26, and the determination of Aggregate Revenue Requirement (ARR) and tariff for FY 2026-27. A central argument is that both power utilities have repeatedly failed to submit mandatory Cost of Service Study reports, categorized by voltage and consumer type, despite clear directives from HERC and the Appellate Tribunal for Electricity (APTEL).
Prof Singh's petition alleges that in the absence of these crucial studies, HERC permitted a substantial tariff increase for FY 2025-26. This decision allegedly enabled the discoms to generate nearly Rs 3,000 crore in additional revenue. The petition claims this hike was approved without a formal application from the discoms and, critically, without providing consumers and stakeholders a chance to participate in the proceedings.
Questionable Financial Projections and Capex Plans
For FY 2026-27, the two distribution companies have projected a combined revenue deficit exceeding Rs 4,484.71 crore. The petition notes that no clear methodology has been proposed to bridge this massive gap. On the capital expenditure (capex) front, DHBVN has proposed an outlay of Rs 2,738.69 crore for FY 2026-27, a significant jump from its APR of Rs 1,900 crore and a True-Up claim of Rs 1,658.36 crore for FY 2024-25. UHBVN has proposed a capex of Rs 2,056 crore.
The former minister argues that these figures indicate a lack of integrated planning and are not backed by proper analysis. He contends that capex proposals without details on payback periods, cost-benefit analysis, and measurable outcomes are meaningless. The petition demands detailed disclosures on expected impacts on loss reduction, supply quality, and load growth to allow for informed public scrutiny.
Persistent Inefficiencies and Consumer Burden
Despite years of large capital expenditures, both discoms continue to project high distribution losses. For FY 2026-27, DHBVN projects losses of 9.54 per cent and UHBVN projects 9.85 per cent—figures that are higher than their reported actual performance and, as per the petition, reflect ongoing operational inefficiency. It is argued that distribution losses should ideally not exceed 6 to 8 per cent.
Furthermore, DHBVN has projected revenue earnings of Rs 28,112 crore for FY 2026-27, an increase of Rs 4,116 crore, primarily from higher fixed charges. The petition asserts that such gains should translate into tariff relief for consumers rather than justifying further increases.
Prof Sampat Singh has urged HERC to treat the discoms' non-compliance seriously and ensure no tariff increase is approved without transparency and proper consumer consultation. He has sought permission to present his arguments during the commission's hearing scheduled for January 8, 2026, stating he wishes to place additional facts on record in the interest of consumers across all categories.
