HERC Approves Revised Power Procurement Plan For Summer 2026, Pushes Smarter Cost Strategy In Haryana

The Haryana Electricity Regulatory Commission has issued a key order on how the state will manage power supply during the high-demand summer and paddy season of 2026. The decision comes as Haryana prepares for a surge in electricity use between May and September, mainly due to heavy air-conditioning load and increased use of agricultural tube wells.

Initially, the Haryana Power Purchase Centre had sought approval to procure up to 1,345 MW of round-the-clock (RTC) power to meet the expected shortage. However, during the course of proceedings, the situation improved. Fresh developments, including a central government directive to run imported coal-based plants like Coastal Gujarat Power Limited and additional allocations from central generating stations, eased the supply pressure.

As a result, HPPC revised its requirement and sought approval for a reduced capacity of up to 687 MW. This procurement will now be limited to a shorter period from June to August 2026, instead of the earlier longer duration. The revised plan reflects a more balanced approach based on updated demand and supply projections.

The power will be procured through a competitive bidding process under NIT-124, where multiple generators and traders participated. For July 2026, which is expected to see the highest demand, the approved weighted average tariff stands at around ₹5.97 per unit. HPPC maintained that entering into firm contracts ensures reliability and protects the state from volatile prices in the power exchanges, where rates can rise sharply and even touch ₹10 per unit during peak hours.

While approving the revised procurement, the Commission also raised serious concerns about past practices. It pointed out that during 2024–25, HPPC spent large amounts on costly bilateral power purchase agreements, which could have been avoided by better use of the power exchanges. The Commission observed that Haryana is generally a power-surplus state for most of the year and faces shortages only during short peak periods in summer.

To improve efficiency and reduce costs, the Commission has issued several important directions. It has asked HPPC to set up a dedicated cost optimization cell that will monitor electricity market prices on a real-time basis and help take better procurement decisions. The regulator also advised moving away from expensive round-the-clock purchases and instead focusing on buying power only during deficit hours.

In addition, HPPC has been encouraged to explore the electricity futures market as a tool to manage price risks. This approach can help lock in prices in advance and reduce exposure to sudden spikes. The Commission clarified that any financial gains or losses from such trading strategies will be shared equally between the utilities and consumers, ensuring that benefits are passed on to the public.

Overall, the order aims to ensure reliable power supply while promoting smarter and more cost-effective procurement practices in the state.