Haryana Electricity Regulatory Commission Maintains Stable Tariffs for 2026-27
In a significant decision, the Haryana Electricity Regulatory Commission (HERC) has announced that power tariffs will remain unchanged for the financial year 2026–27. This move provides relief to approximately 8.4 million electricity consumers across the state, specifically 8,379,739 individuals, who will not face any increase in their electricity bills.
Discoms' Financial Challenges and Consumer Relief
Despite facing substantial financial pressures, the commission opted against a tariff hike. Both state power distribution companies, Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVN), have projected a combined loss of around Rs 4,484 crore for the upcoming financial year. This decision follows a marginal tariff increase in 2025, the first in seven years, which was implemented to reduce losses but proved insufficient to cover the projected deficit of Rs 4,520 crore for 2025-26.
Historically, power tariffs in Haryana were last revised in 2017-18, with a reduction for small consumers in 2020-21. The recent increase, ranging from 20 to 40 paisa per unit across various categories, did not fully address the discoms' financial shortfalls, highlighting the ongoing challenges in the sector.
Public Opposition and Regulatory Process
The decision to keep tariffs unchanged was heavily influenced by public sentiment. During extensive public hearings conducted by HERC, consumers from all categories strongly opposed any proposed tariff hikes. These hearings included sessions at the HERC courtroom in Panchkula on January 8, followed by field hearings in Gurgaon, Panipat, Hisar, and Yamunanagar, where stakeholders voiced their concerns.
HERC chairman Nand Lal Sharma, along with members Mukesh Garg and Shiv Kumar, signed the tariff order on March 25 after a thorough consultative process. The commission emphasized maintaining a revenue-neutral average revenue realised (ARR) by focusing on efficiency improvements in revenue collection, receivables management, power procurement optimization, and loss reduction.
Efficiency Measures and Sector Reforms
To enhance the power sector's performance, HERC has issued several key directives. These include restructuring and strengthening the Haryana Power Purchase Centre (HPPC) to ensure more transparent and cost-effective power procurement. Additionally, demand side management (DSM) measures have been prioritized to address demand fluctuations, with a current gap of about 3,000 to 5,000 MW between peak and off-peak levels.
The commission has also instructed DISCOMs to shift from circle-level monitoring to feeder-level interventions, particularly in areas with high aggregate technical and commercial (AT&C) losses, to drive micro-level efficiency improvements.
Subsidies and Benefits for Agricultural Consumers
In a major boost for the agricultural sector, HERC has allocated over Rs 7,870 crore for state government subsidies towards agriculture tubewell supply. Farmers will pay only Rs 0.10 per unit against the actual supply cost of Rs 7.4 per unit, offering substantial financial relief.
Furthermore, agricultural consumers who applied for tubewell connections up to 10 BHP by December 31, 2023, will be permitted to enhance their load without affecting their seniority. This one-time opportunity will be available until May 31, 2026, though consumers with existing solar tubewell connections are ineligible.
This comprehensive approach by HERC aims to balance consumer interests with sectoral sustainability, ensuring stable electricity costs while pushing for operational efficiencies in Haryana's power distribution network.
