HERC Puts Eleven Power’s Distribution Licence on Hold Following Haryana Government Directive

The Haryana Electricity Regulatory Commission (HERC) has decided to put further proceedings on hold regarding the parallel electricity distribution licence granted to Eleven Power Private Limited (EPPL) for Gurugram and Nuh districts, following a policy directive issued by the Haryana State Government. In its order dated October 28, 2026, the Commission rejected EPPL’s request for an advance hearing and stated that it would not take further action on the licence while the government’s directions remain in force.

HERC had initially approved the parallel distribution licence for EPPL on October 19, 2026, for a period of 25 years. The proposed licence covered the revenue districts of Gurugram and Nuh, allowing the company to enter the electricity distribution sector in these areas. Under the initial order, EPPL was required to submit its formal acceptance within one week. Following acceptance, the Commission was expected to publish a public notice in English and Hindi daily newspapers to advance the licensing process.

EPPL submitted its acceptance of the licence on October 21, 2026. Two days later, on October 23, the company informed HERC that it had started taking the necessary steps to implement the licence. EPPL also requested advance notification and an opportunity to be heard if any future proceedings or representations concerning the licence were considered by the Commission.

However, the process encountered a significant change after the Haryana State Government issued policy directions under Section 108(1) of the Electricity Act, 2003. Through an official order issued by the Energy Department with the approval of the Chief Minister, the government directed HERC not to create, operationalise or give effect to any parallel electricity distribution licence anywhere in Haryana.

The government’s intervention followed concerns raised by existing state distribution companies, Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) and Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL). The utilities highlighted concerns regarding the capital adequacy, technical capabilities and ability of new private distribution companies to meet universal service obligations.

The state government also identified potential risks associated with private companies acquiring high-revenue consumers while leaving existing utilities responsible for serving less profitable consumer categories. According to the concerns cited, such developments could weaken cross-subsidies, increase stranded costs, duplicate distribution infrastructure and place additional financial pressure on state-owned utilities and ordinary consumers.

Public concerns and growing agitation among farmers, electricity consumers and utility employees regarding the introduction of parallel distribution systems were also cited as reasons for the government’s intervention.

While considering EPPL’s request on October 28, HERC observed that Section 108 of the Electricity Act provides for the Commission to be guided by state government directions on questions of public interest. Since the directive applied across Haryana, the Commission concluded that no separate adjudicatory proceedings remained necessary in the matter.

Accordingly, HERC rejected EPPL’s request for an advance hearing and decided not to proceed further with the licence while the government’s directions remain effective. The order was issued from Panchkula and signed by HERC Officiating Chairman and Member.