Gurgaon: Haryana’s two state-owned power discoms have asked the state electricity regulatory commission, HERC, to review its Oct 19 order granting private firm Eleven Power Private Limited a 25-year parallel distribution licence for Gurgaon and Nuh.In a joint review petition filed on Nov 3, Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN) argued that several critical financial, legal, technical and operational aspects of the project need closer scrutiny. The petition comes days after HERC halted further action on the licence following a state govt directive, issued in the wake of a major strike by power employees.The discoms have questioned the commission’s reliance on investment estimates submitted by Eleven Power instead of an independent assessment of the capital needed to set up and run the distribution network. They have also asked whether the proposed licence area meets the minimum area requirements under the applicable regulations, and whether the applicant has adequate financial capacity for the project.The petition further questions the beneficial ownership of Eleven Power’s shares, any encumbrances on them, and the financial strength of its consortium partners.“Utilities have sought scrutiny of the partners’ technical and operational experience, procurement and project execution arrangements and the availability of qualified technical personnel to operate the distribution network,” said a DHBVN spokesperson.HERC’s Oct 19 decision triggered a statewide agitation by power employees, who feared that a private distributor would eat into the state utilities’ consumer base and finances. The strike began on Oct 22 and disrupted supply in several areas for three days. It was called off after govt assured employees that it would intervene.On Oct 26, govt issued written directions to HERC under Section 108(1) of Electricity Act, 2003, ordering that no parallel distribution licence be created, operationalised or effectuated anywhere in Haryana. It cited the impact on consumers and the public interest, as well as the financial implications for state-owned discoms if they lost high-revenue consumers. It also described the grant of the licence as a deviation from prevailing policy.Acting on the directive, HERC decided on Oct 28 not to proceed further with the matter for as long as govt’s directions remain in force. It rejected Eleven Power’s request for advance intimation and a hearing, saying no fresh adjudicatory exercise was pending before it.The October 28 order did not, however, revoke or set aside the Oct 19 approval; it only stalled further action. The review petition now seeks reconsideration of the original order on its merits. How the commission will deal with it while Section 108 directions remain operative is yet to be seen.Eleven Power on Thursday said it would pursue legal remedies available under the law against the stalling while continuing to engage with state govt and the regulator on the issue.
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