Haryana Electricity Regulatory Commission (HERC) has dismissed petitions filed by the state’s two power distribution companies, Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam, seeking approval to recover additional surcharge from open access consumers for the second half of the financial year (FY) 2023-24.

Background

The DISCOMs submitted petitions to determine an additional surcharge using actual data from the first half of FY 2023-24. They argued that the surcharge was needed to address costs related to stranded power—electricity generated but unused due to decreased demand from open access consumers.

The DISCOMs proposed an additional surcharge of ₹0.82 (~$0.0098)/kWh, up from ₹0.53 (~$0.0063)/kWh. This new rate was calculated based on a fixed charge of ₹0.94 (~$0.0113)/kWh, derived by dividing the total additional surcharge by the estimated units of power purchased under open access for the second half of the fiscal year. This estimate assumed a power consumption pattern similar to that in the first half.

The increase was attributed to a rise in open access transactions, which led to more stranded power and higher fixed costs that needed recovery. The DISCOMs provided detailed calculations, including month-wise stranded power and open access purchases. For example, in May 2023, 11.64 MW of power was stranded, while 12.98 MW was purchased through open access.

Commission’s Analysis

The Commission noted that the petitions were based on data from the first half of FY 2023-24, whereas the relevant data for determining the surcharge should have been from the second half of the same fiscal year, which had already concluded.

HERC directed the DISCOMs to provide data from the second half of FY 2023-24. This updated data showed a significant increase in stranded power compared to the first half.

However, the Commission observed that any surcharge determined could not be applied retroactively. Due to the Model Code of Conduct in effect from August 16, 2024, following the announcement of state legislative assembly elections, no tariff-related orders could be issued until after the elections.

HERC emphasized that using outdated data to determine the surcharge would be unfair to consumers and not reflective of current power usage and cost scenarios. Consequently, the petitions were dismissed as moot, with HERC advising the DISCOMs to file new petitions for the second half of FY 2024-25 using appropriate data.

In April 2023, Haryana issued its Green Energy Open Access Regulations, 2023, in line with the Union government’s green energy open access rules introduced last year.

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