Haryana regulator grants first private parallel power distribution licence
The Haryana Electricity Regulatory Commission has granted Eleven Power Pvt Ltd a 25-year parallel distribution licence for Gurugram and Nuh. It will be the first private player in Haryana's power distribution. The Haryana government, which opposed the move, plans to appeal to the Appellate Tribunal for Electricity.
Practice 2 MCQsMains
Why in news
Haryana's distribution is run by two state discoms, UHBVN and DHBVN. A parallel licence lets a second company supply power in the same area through its own network, giving consumers a choice of supplier.
Prelims pointers
- The sixth proviso to Section 14 of the Electricity Act, 2003 allows two or more distribution licensees in the same area, each with its own network.
- Eleven Power plans a capital investment of ₹4,717 crore between 2026-27 and 2030-31.
- Mumbai is India's best-known example of overlapping licensees: Tata Power, BEST and Adani Electricity.
- The Appellate Tribunal for Electricity (APTEL) hears appeals against orders of electricity regulatory commissions under the Electricity Act, 2003.
- According to a Central Electricity Authority report, fixed costs make up 38–56% of a discom's annual revenue requirement. Fixed charges recover only about 9–20% of revenue.
- Electricity is a Concurrent List subject (Entry 38).
Mains angle
Competition can improve service. But duplicate networks and loss of high-paying industrial consumers could raise costs and weaken the cross-subsidies that keep household and farm tariffs low.
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