Gurgaon/New Delhi: In a first, Haryana Electricity Regulatory Commission (HERC) on Monday granted a 25-year power distribution licence to a private company for Gurgaon and Nuh, allowing it to operate alongside existing state-run utilities Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN).More than 8.3 lakh consumers across the two districts, including households, farms, shops, industrial units and offices, could eventually get the option to choose between two distribution companies once the new network reaches their areas. However, consumers will not be able to switch suppliers immediately. Migration will be allowed only after HERC approves a protocol covering outstanding dues, metering and other operational matters.The licence has been issued to Eleven Power, which plans to build a technology-driven distribution network focused on renewable energy. Its licensed area will cover Gurgaon, Manesar, Sohna and Nuh. The company has proposed a capital investment of Rs 4,716.7 crore over five years, from 2026-27 to 2030-31.The Oct 19 order marks the first parallel distribution licence granted in Haryana and one of the few such approvals in India under the Electricity Act, 2003. The licence will cover all consumer categories in Gurgaon and Nuh.Mumbai has long had multiple distribution licensees operating in overlapping areas, with Tata Power competing with Adani Electricity in parts of the suburbs and BEST serving parts of the island city. Delhi, too, has three distribution companies, besides NDMC, but they operate in separate geographical areas without direct competition.Of the proposed investment, Rs 4,650.4 crore has been set aside for the wire business and Rs 66.4 crore for the supply business. Eleven Power has earmarked Rs 304.4 crore, or about 6.5% of the total capital expenditure, for Nuh, where network development is scheduled to begin in the first phase.HERC accepted the company’s phased rollout plan for the entire licensed area and rejected objections that it could focus on commercially attractive pockets while ignoring rural and agricultural consumers. The commission said the plan was consistent with the universal service obligation under the Electricity Act.In its petition to HERC, Eleven Power said it would supply electricity on a “non-discriminatory basis to all categories of consumers”, providing new connections within the timelines specified in the commission’s Electricity Supply Code.“… the Commission is of the considered view that the operation of a parallel distribution licensee, providing electricity consumers with a choice of supplier and promoting competition in the electricity distribution sector, assumes particular significance in the present circumstances,” HERC said in its order.Sunil Sachdeva, chairman of Eleven Power, said the network had been designed for reliability, with N-1 redundancy, a supervisory control and data acquisition-enabled high-tension network, and a distribution management system. “Underground cabling is planned across Gurgaon, while Nuh will have a mix of underground and overhead networks,” said Sachdeva.Power demand across Gurgaon and Nuh, including Manesar and Sohna, is expected to rise sharply. Projections submitted by Eleven Power, based on growth rates approved by HERC, estimate annual electricity sales in the licensed area to increase from about 12,220 million units in FY 2024-25 to around 18,224 million units by FY 2030-31. Commercial establishments, industrial units andhighrise residential buildings in the region continue to rely on diesel generators during outages.The licence has been granted at a time when Haryana’s existing distribution companies are dealing with a substantial backlog of applications for new connections and load enhancement. Across the state, nearly 1.3 lakh applications involving more than 2,400 MW of load were pending as of Oct 2025.HERC’s order cited data submitted by the two state distribution companies. As of Sept 30, 2025, UHBVN had 20,603 pending applications involving 770.4 MW. DHBVN had 1,08,590 pending applications involving 1,642.5 MW as of Oct 1, 2025.The combined pending load stood at 2,413 MW, compared with 2,403.8 MW on April 1, 2025. The commission noted with concern that the backlog remained large despite the release of several connections.HERC clarified that the decision was specific to Gurgaon and Nuh and would not create a vested right or automatic entitlement for other applicants seeking parallel distribution licences elsewhere in Haryana.Eleven Power has proposed sourcing 80% of its electricity requirement from renewable sources, including firm and dispatchable renewable energy and Green Day Ahead Market. The remaining 20% will come from thermal power.Before starting commercial operations, the company must obtain transmission connectivity and statutory clearances, complete system-safety studies, execute interconnection arrangements with Haryana Vidyut Prasaran Nigam and comply with grid and scheduling requirements.Eleven Power will also seek HERC’s approval for a consumer migration protocol within 60 days of the licence being granted. Consumer switchovers can take place only under the approved framework. The company must communicate its acceptance of the licence and its conditions within one week of the order’s issuance before proceeding with the regulatory approvals required for commercial supply.Sachdeva said consumers would be served through smart meters, digital billing and customer relationship centres. The company has also set service standards for reliable supply, transparent billing, swift grievance redressal and a responsive digital interface.
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