The Haryana Electricity Regulatory Commission (HERC) has issued a stern directive to the state's power distribution companies, urging them to further reduce their technical and commercial losses. The commission warned that any increase in these losses would intensify the financial strain on Haryana's power sector.
Current Loss Figures and Historical Context
According to the latest data, the aggregate technical and commercial (AT&C) losses for Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) currently stand at 9.3%. For Dakshin Haryana Bijli Vitran Nigam Limited (DHBVN), the figure is slightly higher at 10.3%. While this marks a significant improvement from previous years—where losses ranged between 13–15% for UHBVN and 14–17% for DHBVN in earlier tariff cycles—the regulator emphasized that these losses remain a primary driver of the persistent revenue deficit.
HERC Chairman Nand Lal Sharma explicitly directed both discoms to ensure strict adherence to loss reduction targets. A key part of this directive includes expediting efforts to provide 24-hour power supply to the remaining villages across the state.
Financial Implications of Rising Losses
The commission highlighted the severe financial impact of AT&C losses. It stressed that even a marginal 1% increase in these losses can push the discoms deeper into financial deficit, primarily due to the high cost of power procurement. This warning comes despite a projected improvement in the discoms' annual financial performance.
For the financial year 2026–27, the discoms have projected an Aggregate Revenue Requirement (ARR) of Rs 51,156.7 crore. With an expected revenue of Rs 52,761.8 crore, the utilities anticipate a surplus of Rs 1,605.1 crore for the current year. This is a notable improvement from earlier years when annual deficits regularly exceeded Rs 7,000 to Rs 9,000 crore.
Persistent Revenue Gap and Underlying Challenges
However, the financial picture is not entirely positive. After adjusting for the revenue deficit carried forward from the previous year, the state still faces an overall revenue gap of Rs 4,484.7 crore. In previous cycles, accumulated revenue gaps had crossed a staggering Rs 10,000 crore.
This indicates that while the financial trajectory is moving in a positive direction, significant stress persists. The commission attributed this ongoing challenge to a combination of factors:
- Historical financial liabilities carried over from the past.
- Continuously rising power purchase costs.
- The persistent drag of AT&C losses on revenue.
The HERC's directive makes it clear that sustained and aggressive action on reducing distribution losses is non-negotiable for achieving long-term financial stability in Haryana's power sector.
