Haryana Approves First Private Power Distributor
Haryana’s electricity distribution sector is currently dominated by two state-owned distribution companies, Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam. The approval is intended to give consumers a choice of supplier and introduce competition, but the government has said it will challenge the order before the Appellate Tribunal for Electricity.
Under Section 14 of the Electricity Act, 2003, more than one distributor can operate in the same geographical area if each builds and maintains its own network. Eleven Power’s business plan envisages capital investment of Rs. 47.17 bn over five years from 2026-27 to 2030-31. The company has formed a consortium with Advait Energy Transitions, Vision India Services and HEC Infra Projects to develop infrastructure.
Energy sector experts have warned that parallel networks could raise delivery costs because infrastructure and fixed expenses would be spread across separate consumer bases. Fixed expenses account for about 38 to 56 per cent of a distribution company’s total annual revenue requirement, while fixed charges collected from consumers contribute only about 9 to 20 per cent of revenue. A shift of consumers to the new distributor could therefore weaken the incumbent’s ability to recover costs.
The most significant dispute concerns cross-subsidies, through which commercial and industrial consumers help fund electricity supplied to households and farmers. Dakshin Haryana Bijli Vitran Nigam has said Gurugram and Nuh account for 35.23 per cent of its sales and 42.98 per cent of revenue, which stood at Rs. 94.94 bn in 2025-26. It estimates revenue losses ranging from Rs. 4.24 bn to Rs. 42.72 bn if between 2.5 per cent and 45 per cent of sales shift to Eleven Power. The private company has disputed the projections and said its plan assumes only 2.5 per cent of existing sales will move in 2027-28.