In a significant step towards consumer relief, energy efficiency, and financial stability, the Haryana Electricity Regulatory Commission (HERC) has released its much-awaited tariff order for the financial year 2025-26, effective from April 1. Under the leadership of Chairman Mr. Nand Lal Sharma and Member Mr. Mukesh Garg, the order emphasizes demand-side management (DSM), energy conservation, and a consumer-centric approach.
One of the key highlights of this order is the complete elimination of the Monthly Minimum Charge (MMC) for domestic consumers with a monthly consumption of up to 300 units and a load of up to 5 kW. These consumers will now only pay for their actual consumption, providing them with financial relief and encouraging energy conservation. This provision is expected to balance the impact of a minor tariff increase of 15-20 paise per unit while discouraging unnecessary consumption.
Relief for Agricultural Consumers
The order offers relief to agricultural consumers as well. The MMC for metered agricultural connections has been reduced from ₹200 to ₹180/₹144 per BHP per year, depending on the load. Additionally, out of the proposed revenue gap of ₹4,520.24 crore, only ₹3,262.38 crore has been approved, rejecting unjustified expenditures. The Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) have been directed to take effective cost-control and loss-reduction measures.
Encouraging Sustainable Agriculture
To promote sustainable agriculture, a new tariff category has been introduced, covering mushroom compost & spawn production, hydroponics, aeroponics, and cold storage units operated by Farmer Producer Organizations (FPOs). The tariff has been set at ₹4.75 per unit for loads up to 20 kW and ₹6.50 per unit for higher loads.
The commission has also capped distribution losses at 10%, rejecting excessive estimates submitted by power distribution companies. Additionally, a cost-of-supply study must be conducted within six months to ensure accurate cost assessment.
Boosting Green Energy and Energy Storage
To promote green energy, the commission has directed distribution companies to simplify the PM Surya Ghar scheme, ensure timely availability of net meters, and establish a 200 MWh Battery Energy Storage System (BESS) by the end of FY 2025-26.
Financial and Operational Reforms
The order also focuses on improving the financial health of distribution companies. The trade payables increased by ₹2,877 crore in FY 2023-24, reaching ₹6,370 crore. Recognizing this issue, the commission has issued directives for debt recovery and restructuring of storage systems.
Haryana Vidyut Prasaran Nigam Limited (HVPNL) has identified ₹572.23 crore worth of unutilized infrastructure, highlighting the need for better strategic planning. Immediate action has been instructed for faulty metering, transformer failures, and pending connections. The Aggregate Technical & Commercial (AT&C) losses for urban feeders must be reduced below 20% (previously 25%) and rural feeders below 40% (previously 50%). Moreover, a simplified and transparent billing system is to be implemented for consumers.
Ensuring Transparency and Accountability
To uphold transparency, the commission has ordered strict monitoring of electricity procurement through the Haryana Power Purchase Centre (HPPC). Additionally, public hearings and Lok Adalats will be conducted to ensure the timely resolution of consumer grievances through the Consumer Grievance Redressal Forum (CGRF) and courts.
This balanced and meaningful tariff order not only safeguards consumer interests but also promotes financial discipline, operational efficiency, and the use of green energy. It sets a new regulatory benchmark in Haryana’s power sector, reinforcing the state’s commitment to affordable, reliable, and sustainable electricity supply.
