Parallel Electricity Distribution Licence: Haryana to Appeal HERC Order for Gurugram and Nuh

Haryana Energy Minister Anil Vij said the state government will challenge a new power distribution licence for Gurugram and Nuh. Vij said the appeal will go to APTEL Appellate Tribunal for Electricity. The challenge targets an order by the Haryana Electricity Regulatory Commission that allows a private company to distribute power.

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The Haryana Electricity Regulatory Commission granted Eleven Power Private Limited a parallel electricity distribution licence. Eleven Power said the order was dated October 19. The company said the licence runs for 25 years. It covers both revenue districts under Section 14 of the Electricity Act, 2003.

Haryana electricity distribution licence appeal to APTEL

Vij announced the planned appeal in a post on X in Hindi. The post said the state will approach APTEL Appellate Tribunal for Electricity. It challenged the Haryana Electricity Regulatory Commission order. The order permitted Eleven Power Private Limited to operate in Gurugram and Nuh.

In August, Vij said the Haryana government opposed a parallel distribution licence in both districts. Vij said the application went straight to HERC. Vij described HERC as an autonomous body. Vij said the application did not come through the Energy Department.

Vij also said the commission later asked for the state government’s reply. Vij said the proposal was opposed on every point. The comments referred to private power companies seeking parallel rights. The state government stance was presented as consistent during the review process.

Haryana electricity distribution licence and consumer impact

Eleven Power said it planned to invest Rs 4,717 crore in its distribution network. The investment was planned over five years. Eleven Power said power supply was expected to start in 2027-28. The company said the licence allowed operations alongside the existing distributor.

Under the parallel licence model, the existing utility will keep serving customers. Consumers will not need to take immediate action. The option to switch will open later. Switching becomes possible when Eleven Power’s network reaches a consumer’s area.

At present, Dakshin Haryana Bijli Vitran Nigam DHBVN supplies electricity in Gurugram and Nuh. DHBVN is a state-owned power distribution company. The new licence does not replace DHBVN. Instead, it permits another distributor in the same territory.

Haryana electricity distribution licence draws political criticism

Indian National Lok Dal’s patron and former Minister Sampat Singh criticised the decision. Singh said, "The decision to grant a parallel electricity distribution licence to Eleven Power for Gurugram and Nuh is not a routine regulatory order. It is a grave and irreversible assault on Haryanas public power sector, on the interests of farmers, rural consumers and the poor, and on the very principle that essential services must serve people before profit,\" in a statement.

Singh said the move was a first for Haryana’s distribution structure. Singh said, \"For the first time in Haryana, two distribution agencies have been permitted to operate in the same territory. Hitherto, electricity distribution in any area has been undertaken either by a State public-sector utility or by a private licensee, not by two parallel agencies competing within the same supply area,\" in the statement.

Singh also alleged the state government was not fully distant from the decision. Singh said the government’s conduct made it clear it was not only a regulator’s call. Singh said Gurugram provides a disproportionately high share of DHBVNLs revenue. Singh added that Gurugram also has among the lowest distribution losses.

The licence order and the planned appeal now place the issue before APTEL Appellate Tribunal for Electricity. The state government has said it will contest the parallel licence. Eleven Power has outlined investment and a 2027-28 supply timeline. Meanwhile, DHBVN continues to serve consumers in Gurugram and Nuh.

With inputs from PTI