HERC seeks action plan from power utilities to cut losses

The Haryana Electricity Regulatory Commission (HERC) conducted an in-depth review during a public hearing yesterday to discuss the Annual Revenue Requirement (ARR) petitions filed by the state's power utilities.

The hearing, chaired by Nand Lal Sharma, Chairman, with member Mukesh Garg, involved examination of petitions submitted by the Uttar Haryana Bijli Vitran Nigam (UHBVN), Dakshin Haryana Bijli Vitran Nigam (DHBVN), Haryana Vidyut Prasaran Nigam Limited (HVPNL), and Haryana Power Generation Corporation Limited (HPGCL).

The commission reviewed the financial and operational performance of the utilities and directed them to submit action plans to reduce revenue deficits, make the tariff determination process more transparent, and provide relief to consumers.

The commission sought a detailed report on the Fuel Surcharge Adjustment (FSA) of Rs 8,245.85 crore and directed to reduce it. Additionally, the utilities were instructed to suggest measures, such as cost-cutting and efficiency improvements to bridge the estimated revenue deficit of Rs 4,520.24 crore for financial year 2025-26.

The commission emphasised the need to simplify and make the billing process more transparent. It directed that key details like billing period, total consumption, bill amount, and due date should be displayed in bold letters on electricity bills. Consumers should also be notified of key billing information via SMS for their convenience.

The commission further directed the utilities to present a detailed action plan for consumer category-wise tariff hikes and subsidies. It also sought an analysis of banking charges (Rs 500.42 crore) and data related to energy banking. A comprehensive plan for reducing distribution losses over the next five years, along with data on the number and costs of contractual and regular employees, was also requested.

HVPNL was directed to submit a plan to reduce transmission losses, while HPGCL was instructed to provide a detailed report on the disposal and sale of fly ash, including its inclusion as "other income" in the ARR.

The commission also directed HPGCL to increase the Plant Availability Factor (PAF) from 80% to 90%, and to present a plan for achieving this goal.

Detailed information on the projected tariff for the Yamunanagar plant and claims regarding coal quality was also sought. Additionally, HPGCL was asked to assess the possibility of operating DAV School located on its premises independently, without any support from the corporation.

Sharma described the public hearing as a significant step toward enhancing the efficiency and transparency of power utilities. He stated that the objective of this process was not only to strengthen the financial health of the utilities but also to ensure the delivery of high-quality services to consumers. He further added that these reforms would lead to improved operations of power distribution and generation companies.

The commission directed all utilities to provide the requested information within the stipulated time frame. It also clarified that final orders would be issued soon, which were expected to make Haryana's power sector more transparent and equitable.