HERC Requests Comprehensive Action Plans from Power Utilities to Mitigate Revenue Losses

The Haryana Electricity Regulatory Commission (HERC) recently reviewed the annual revenue requirement petitions from the state's power utilities. This review, led by Nand Lal Sharma and Member Mukesh Garg, took place on Wednesday. The commission examined submissions from Uttar Haryana Bijli Vitran Nigam (UHBVN), Dakshin Haryana Bijli Vitran Nigam (DHBVN), Haryana Vidyut Prasaran Nigam Ltd (HVPNL), and Haryana Power Generation Corporation Ltd (HPGCL).

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Focus on Revenue Deficits and Tariff Transparency

During the hearing, the commission assessed both financial and operational performances of these utilities. It instructed them to devise action plans aimed at reducing revenue deficits. Additionally, it stressed the importance of making the tariff determination process more transparent to benefit consumers.

The commission requested a comprehensive report on the fuel surcharge adjustment of Rs 8,245.85 crore, urging its reduction. Utilities were also asked to propose strategies like cost-cutting and efficiency improvements to address an estimated revenue deficit of Rs 4,520.24 crore for 2025-26.

Billing Process and Consumer Information

To enhance transparency in billing, the commission directed that electricity bills should clearly display key details. These include the billing period, total consumption, bill amount, and due date, all in bold letters. This move aims to simplify the billing process for consumers.

Haryana Vidyut Prasaran Nigam Ltd (HVPNL) was tasked with submitting a plan to decrease transmission losses. Meanwhile, Haryana Power Generation Corporation Ltd (HPGCL) was asked to provide a detailed report on fly ash disposal and sale. This report should include how fly ash is accounted for as other income in their revenue requirements.

Improving Plant Availability Factor

HPGCL received directives to increase its plant availability factor from 80% to 90%. The commission expects a plan outlining how this target will be achieved. This step is part of broader efforts to improve operational efficiency within power generation companies.

Chairman Nand Lal Sharma described the public hearing as crucial for enhancing efficiency and transparency in state power utilities. He emphasised that these reforms aim not only to strengthen financial health but also to ensure high-quality service delivery to consumers.

Sharma highlighted that these initiatives would lead to better operations for power distribution and generation companies. The focus remains on improving both financial stability and service quality across Haryana's power sector.