After stepping in to block Haryana Electricity Regulatory Commission’s (HERC) contentious order granting a parallel electricity distribution licence to a private firm, the Nayab Singh Saini government will officially direct the HERC on Monday “not to create, operationalise or effectuate” a parallel power distribution licence anywhere in the state.
“We may get the government’s letter in question by Tuesday as Monday is a gazetted holiday in Haryana. Our office was already closed by the time the government announced its decision on Friday evening,” an HERC official said, asking not to be identified.
Two days of the strike had hit power supply operations across the state. The government stated that HERC’s proposed decision to grant the licence was opposed on the grounds of non-compliance with statutory requirements, including minimum area of supply, capital adequacy, creditworthiness, technical capability and universal service obligations, etc. Top government sources say the two-page letter (HT has copy), issuing directions under sub-section (1) of Section 108 of the Electricity Act, 2003, and addressed to the HERC secretary will be officially sent on Monday, bringing under spotlight the power regulator’s next move on the hotly debated issue. The power department employees called-off their strike on Friday evening after the state government agreed to invoke Section 108 of the electricity act, 2003, and assured that HERC will be directed to revoke its decision to grant licence to a private company for supplying electricity in Gurugram and Nuh. As per the official data, there were 35,846 complaints of the consumers about power outage till 8 pm on Friday.
But, by 8 pm on Saturday, the number of complaints had come down to 377 due to fast restoration of power across the state, power officials said.
Requesting the HERC secretary to “bring these directions of the state government” under Section 108 to the notice of the commission, the letter reads: “The state government is gravely concerned about the impact of the grant of a parallel license on the consumers as well as its impact on the public interest and is in complete deviation of the present policy. Stating that the “state government is presently not going into the correctness of the findings” passed in the October 19 order by the HERC, the letter further says:” Considering the financial implications on the state revenue and the consumer interest as well as the public interest, the state government, as a matter of policy and to protect the interest of the consumers generally in the state, in exercise of the powers conferred by sub-section (1) of Section 108 of the Electricity Act, 2003, hereby directs the commission not to create, operationalise or effectuate a parallel distribution licence anywhere in Haryana. The letter also says that objections were raised regarding selective acquisition of high-revenue consumers, adverse impact on cross-subsidy, existing power purchase commitments, duplication of distribution infrastructure and the consequent financial burden on the incumbent distribution licensee and its consumers. Earlier reporting noted: Parallel power distribution licences barred across Hry With the state government directing the Haryana Electricity Regulatory Commission (HERC) “not to create, operationalise or effectuate” a parallel distribution licence anywhere in Haryana, a petition by a conglomerate seeking a parallel-distribution licence for Faridabad, Palwal, Sonipat, Panipat and Karnal is infructuous, an official said on Saturday. Earlier reporting noted: “After the government decides to use special provisions of Section 108 of the Electricity Act, 2003 to override the HERC’s decision to grant a parallel-distribution licence, there is no question that any other private firm will get any kind of permission to enter the state’s power sector,” the official said, who did not wish to be named. Earlier reporting noted: Haryana energy department officials said the other petition on parallel-distribution licence was yet to be listed for hearing as the unions went on a strike.
