HERC Allows Power Drawal Point Shift Amid Substation Overloading And Relinquishment Charge Dispute In Haryana

The Haryana Electricity Regulatory Commission (HERC) has addressed a dispute involving Merino Industries Limited and state power utilities over the shifting of its power drawal point from the 33 kV Rohad substation to the 132 kV Sampla substation in Haryana.

Merino Industries operates a manufacturing facility at Rohad in Jhajjar district and has been sourcing electricity from its 5 MW captive solar power plant located in Hisar through an 11 kV independent feeder connected to the Rohad substation. The arrangement was established under a 25-year Long-Term Open Access (LTOA) agreement.

The company approached the authorities after facing repeated power disruptions caused by severe overloading at the Rohad substation. Between 2022 and 2025, Merino reported 736 power interruptions, with the outages collectively exceeding 1,500 hours. According to the company, these interruptions affected manufacturing operations and resulted in significant commercial losses.

To address the problem, local officials of the distribution utility advised Merino to shift its feeder connection to the nearby 132 kV Sampla substation. The proposed modification was subsequently approved on technical feasibility grounds. Merino invested nearly Rs 3 crore to establish a new dedicated transmission line of around 10 kilometres for connecting its facility to the Sampla substation.

However, Haryana Vidyut Prasaran Nigam Limited (HVPNL) later issued demand notices dated December 17, 2024, and April 23, 2025, seeking relinquishment charges from Merino. The charges were calculated at 66% of the applicable wheeling and transmission tariffs.

HVPNL argued that changing the drawal point amounted to termination of the existing open access arrangement. Merino disputed the claim, stating that there was no change in its approved LTOA power quantum or the overall transmission corridor. It also argued that no network capacity would become stranded because of the shift and that the modification was required due to overloading at the Rohad substation.

During the proceedings, HVPNL acknowledged that relinquishment charges are calculated as a percentage of the applicable transmission and wheeling charges. The utility also accepted that the Commission had previously exempted Merino from transmission and wheeling charges under the state’s renewable energy provisions applicable to its captive solar project. On this basis, it was acknowledged that no relinquishment charges could be imposed where the underlying transmission and wheeling charges were not payable.

At the same time, HVPNL maintained that the physical change in the drawal location should be treated as a fresh open access arrangement under Regulation 6(10) of the HERC Open Access Regulations. The utility therefore maintained that Merino would have to follow the applicable fresh application and statutory fee procedures.

HERC granted interim relief permitting Merino to shift its connection to the Sampla substation to avoid further commercial losses. The Commission also directed the parties to complete the required procedural and regulatory filings concerning the revised connectivity arrangement.