Power engineers oppose parallel distribution licence for Gurugram, Nuh

Power engineers have voiced strong opposition to a proposed parallel distribution licence for the Gurugram and Nuh districts, a move that the Haryana Electricity Regulatory Commission (HERC) is set to review at a public hearing scheduled for July 8. The commission, which oversees electricity distribution across the state, issued an interim order on May 26 that highlighted concerns about the potential “cherry-picking” of profitable consumers should the licence be granted.

The interim order, released on May 26, warned that allowing separate distribution entities could enable operators to selectively serve areas with higher revenue potential while leaving less lucrative regions underserved. Power engineers, who have been consulted as part of the commission’s assessment, argue that the licence could undermine the equitable supply of electricity and create administrative duplication.

The public hearing, slated for July 8, will give stakeholders, including the engineers, utility officials and local residents, an opportunity to present their perspectives. HERC has indicated that the session will be conducted in a transparent manner, allowing detailed discussion of the proposal’s implications for service delivery, tariff structures and overall grid stability.

The parallel distribution licence proposal, announced earlier this year, aims to expand the reach of private distribution companies in the rapidly growing Gurugram and Nuh regions. By creating a separate licensing framework, the plan seeks to attract investment and improve service quality in areas where the existing utility has faced challenges in meeting demand. However, critics, including the power engineers, contend that the arrangement could lead to fragmented oversight and unequal treatment of consumers.

In the May 26 interim order, HERC explicitly flagged the risk of “cherry-picking”, noting that profitable customers might be selectively supplied while others are neglected. The commission’s language underscored the importance of maintaining uniform service standards across all segments of the population. Engineers have echoed this concern, emphasizing that the licence could result in a two‑tier system where high‑value areas receive priority attention.

The upcoming hearing will also examine the commission’s broader strategy for modernising the state’s electricity network. HERC has been working on reforms to increase efficiency and reduce losses, and the parallel licence is presented as one component of that effort. Yet, the engineers’ opposition suggests that alternative solutions, such as strengthening the existing distribution infrastructure, may be more appropriate.

Local residents in Gurugram and Nuh have expressed mixed reactions to the proposal, though specific sentiments are not detailed in the available information. The hearing is expected to draw attention from industry observers, regulatory experts and civil society groups interested in the future of power distribution in the region.

Overall, the case highlights a tension between expanding private participation in electricity distribution and ensuring that services remain accessible and fair to all consumers. The outcome of the July 8 hearing will shape the regulatory landscape for the next phase of power sector development in Haryana.

Source: Hindustan Times