Ex‑Finance Minister Urges HERC to Reject Private Power Distributor’s Licence Application

Former Haryana finance minister Sampat Singh has urged the Haryana Electricity Regulatory Commission to turn down a licence application submitted by a private firm for power distribution, describing the move as a backdoor privatisation driven by the current BJP government.

The Haryana Electricity Regulatory Commission, established to oversee tariff regulation and licence approvals for electricity distribution, has long operated under a framework that favours state‑run utilities. Since the early 2000s the state has experimented with limited private participation, but the majority of the distribution network remains in public hands. Singh’s appeal comes at a time when the government’s energy policy is under intense scrutiny.

Singh argued that granting the licence would effectively hand over a key public service to private hands without the transparency required of a regulated monopoly. He said the proposal signals an intent to bypass existing safeguards and to open the sector to market forces that could lead to higher tariffs and reduced accountability. His remarks were made during a public discussion on the future of electricity supply in the state.

The accusation places the BJP government under fresh pressure from opposition parties, which have repeatedly warned that the administration favours corporate interests over public welfare. While the ruling party has defended its energy reforms as necessary for efficiency, critics say the backdoor approach undermines the principle of universal access to affordable electricity.

Regulators face a delicate balancing act. The HERC must evaluate the technical competence of the applicant, the financial viability of the project and the potential impact on consumers. Past licences have been approved after rigorous scrutiny, yet the commission’s decisions are often debated in the media and in legislative committees. Singh’s call for outright rejection adds a political dimension to an already contentious process.

The state has a history of considering private participation in electricity distribution, with several proposals floated over the past decade. Earlier attempts to introduce competitive distribution companies were met with resistance from trade unions and consumer bodies, who argued that the move would jeopardise service reliability. Singh’s current stance reflects a continuation of these longstanding tensions.

The HERC comprises senior officials from the electricity department, independent experts and representatives from consumer organisations, giving the body a mixed mandate that balances technical expertise with public interest.

If the licence is eventually granted, the private entity would manage the distribution of electricity across the state, potentially altering tariff structures and the way bills are calculated. Consumer advocacy groups are likely to monitor the situation closely, and any perceived increase in costs could become a rallying point for public protest. The state may also need to amend its electricity act to accommodate a larger private role, a step that would require parliamentary approval.

Singh’s appeal underscores a broader debate about the direction of Haryana’s power sector. The final decision will rest with the HERC, whose members will consider the application in the coming weeks. Whether the commission heeds the former minister’s warning or proceeds with the licence will shape the future landscape of electricity supply for millions of residents.

Singh’s warning brings the issue of energy privatization to the forefront of public debate, highlighting the tension between expanding market participation and preserving a publicly regulated system. The outcome of the licence request will be closely watched by stakeholders across the state, as it may set a precedent for future reforms in the power sector.

Source: Hindustan Times