Particle.news

HERC Pauses First Private Parallel Power Licence for Gurugram and Nuh

The state invoked Section 108 to block implementation on consumer and fiscal grounds, making legal challenges and talks the next likely steps.

Overview

  • The Haryana Electricity Regulatory Commission has stopped further steps to operationalise Eleven Power’s 25-year parallel distribution licence while the state government’s written directions issued on October 26 remain in force.
  • Eleven Power had accepted the licence after HERC granted it in mid-October, but the company says it will keep engaging with authorities and pursue legal remedies available to it, including possible appeal to the Appellate Tribunal for Electricity.
  • The government’s written direction warns a parallel distributor could cherry-pick high-revenue customers, erode cross-subsidies, strand existing power purchase commitments and distribution assets, and shift financial burdens onto the incumbent discom and consumers.
  • A multi-union strike by power-department employees caused blackouts in Gurugram, Nuh and other districts and helped trigger the government intervention, with unions and officials scheduling further talks to resolve remaining demands.
  • What happens next will hinge on legal and administrative moves: the licence remains valid on paper but unusable while the directions stand, the government’s Section 108 finding limits the regulator’s options, and the dispute is likely to be decided by courts or ATEL or by negotiated settlements.