Power distribution utilities in Haryana are facing intensified scrutiny from the state electricity regulator over delays in subsidy payments, revenue gap projections, and transparency in power procurement practices as part of the ongoing tariff review process.
The Haryana Electricity Regulatory Commission (HERC) has raised concerns over substantial outstanding subsidy receivables claimed by the state’s two discoms, Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). The regulator has sought detailed reconciliation between subsidies booked in audited financial statements and the amounts actually received from the state government, pointing to inconsistencies that could impact tariff calculations.
In their Aggregate Revenue Requirement (ARR) submissions, the discoms have projected a combined revenue gap exceeding ₹4,400 crore, prompting the commission to demand clearer justification for the shortfall. HERC has emphasised that unverified subsidy claims and delayed reimbursements cannot be automatically passed on to consumers through higher tariffs.
The regulator has also sought greater clarity on power purchase planning and cost assumptions, noting that Haryana remains significantly dependent on purchased power to meet demand. Detailed disclosures have been sought on short-term and long-term procurement contracts, projected energy requirements, and pricing assumptions to ensure prudence and cost efficiency in procurement decisions.
In addition, the commission has directed utilities to strengthen financial transparency and operational disclosures, warning that tariff orders could be deferred if complete and accurate information is not provided within stipulated timelines. The regulator is also examining steps to improve governance, including audits of power assets and closer monitoring of cost drivers.
The regulatory intervention comes amid ongoing efforts to improve the financial sustainability of Haryana’s power distribution sector, reduce accumulated losses, and protect consumer interests. The outcome of the tariff proceedings is expected to play a critical role in shaping power pricing, subsidy management, and procurement practices in the state for the coming financial year.
