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HERC Upholds Overdrawal And Deviation Charges On Solar Generator And Open Access Consumer In Haryana

The Haryana Electricity Regulatory Commission (HERC) has dismissed a petition filed by ASK Automotive Limited and CMES Power 2 Private Limited challenging the overdrawal and deviation charges imposed by Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). In its order dated October 30, 2026, the Commission upheld the validity of both consumer-side overdrawal charges and generator-side deviation penalties, stating that these charges are necessary to maintain grid discipline and ensure electricity system stability.

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The order was passed by a bench comprising Officiating Chairman Mukesh Garg and Member Shiv Kumar. The Commission directed both petitioners to clear all outstanding amounts under the disputed invoices in accordance with the applicable regulations.

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ASK Automotive Limited operates as a long-term open access (LTOA) captive consumer and draws 6.6 MW of solar power from CMES Power 2 Private Limited. The latter operates a 50 MW solar power park in Sirsa, Haryana. The dispute began when DHBVNL raised monthly bills against ASK Automotive for overdrawal and energy imbalance. At the same time, Haryana Vidyut Prasaran Nigam Limited (HVPNL) imposed Deviation Settlement Mechanism (DSM) penalties on CMES Power 2 for supplying less solar electricity than scheduled.

The petitioners challenged the charges, arguing that solar power generation naturally fluctuates because of changing weather conditions. According to them, reduced solar generation results in lower electricity injection into the grid, which leads to corresponding overdrawal by the consumer. They claimed that imposing separate charges on the generator and consumer for the same energy shortfall amounted to double jeopardy and resulted in unjust enrichment for the distribution company.

The companies also argued that there was a regulatory gap concerning deviation charges applicable to long-term open access consumers using renewable energy. They requested that overdrawal within their sanctioned contract demand should be covered by standby capacity charges or limited to 25% of energy charges.

However, DHBVNL opposed the petition and maintained that generator under-injection and consumer overdrawal are separate operational defaults involving different legal entities. It also explained that unscheduled electricity consumption requires distribution companies to purchase additional power in real time, often at higher prices, to maintain grid frequency and system balance.

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After examining the arguments, HERC rejected all major claims raised by the petitioners. The Commission held that Regulation 8(1)(f) of the Haryana Green Energy Open Access Regulations, 2023, provides a clear framework for deviation settlement charges by referring to existing DSM and open access regulations. Therefore, there was no regulatory vacuum.

The Commission also clarified that deviation charges are commercial and compensatory mechanisms rather than criminal penalties. It stated that generator under-injection and consumer overdrawal represent two independent defaults and can attract separate charges without constituting double jeopardy.

Additionally, HERC distinguished standby charges from deviation charges. Standby charges cover reserved capacity during planned outages, while deviation charges address real-time electricity imbalances. The Commission further stated that weather-related commercial risks should be managed through private contractual arrangements rather than transferred to regular electricity consumers.

With this ruling, HERC has reinforced the responsibility of renewable energy generators and open access consumers to maintain scheduled electricity supply and consumption under applicable grid regulations.


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