The Power Reforms Forum, an association of serving and retired power engineers, has urged the Haryana Electricity Regulatory Commission (HERC) to reject the petition of Eleven Power Private Limited seeking a parallel electricity distribution licence in Gurugram and Nuh, contending that it involved fundamental changes in the power distribution framework with implications extending beyond Haryana.
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In a representation to commission chairman Nand Lal Sharma, forum president Bhupinder Singh said the ownership of the electricity distribution network has historically remained with a single entity and distribution companies have largely been state government-owned entities created under the Electricity Act, 1948, while private distribution companies had only a limited presence in Mumbai and Kolkata. “Even after the Electricity Act, 2003 came into being, private distribution companies have continued to function as single players in their respective areas and there have been no takers for the concept of a second or third parallel distribution licensee in the same area,” Singh said.
Comparing electricity tariffs, the forum claimed that data published by the Power Finance Corporation showed private distribution companies in Delhi charging significantly higher revenue per unit from consumers than DHBVNL, despite having lower aggregate technical and commercial losses.
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The forum also raised concerns over the possibility of “cherry-picking”, stating that although the area sought by the petitioner covers the revenue districts of Gurugram and Nuh, the affluent and industrial consumers could be targeted while poorer and less privileged consumers may be left to be served by the financially stressed incumbent distribution licensee, adversely affecting the quality and reliability of supply.
Questioning the applicant’s credentials, the forum said well-established private distribution companies such as TPDL, CESC, Torrent Power and BSES have refrained from seeking a second distribution licence. Therefore, the petition of the present applicant, which has no core distribution experience, deserves utmost caution, the representation said.
