The Haryana Electricity Regulatory Commission (HERC) has issued a firm directive to the state's key power sector utilities, mandating comprehensive third-party audits of their financial and operational performance. The order was passed during the hearing on the annual revenue requirements submitted by the companies.
Commission's Directives for Transparency and Efficiency
On the first day of the hearing, the HERC panel, led by Chairman Nand Lal Sharma along with members Mukesh Garg and Shiv Kumar, instructed the managements of Haryana Vidyut Prasaran Nigam (HVPN) and Haryana Power Generation Corporation Limited (HPGCL) to ensure an independent audit of their accounts. The commission emphasized that such audits must cover all thermal power plants operating within the state.
Officials from both power companies were explicitly directed to arrange for these external evaluations. The commission noted that similar instructions had been given in the past, indicating a continued push for greater accountability and performance scrutiny in the power sector.
Focus on Ash Management and Plant Safety
Beyond financial audits, the regulatory body laid down specific operational guidelines. It instructed the companies to ensure the proper utilization of ash produced by the thermal plants and to constitute a dedicated ash management committee for this purpose. Furthermore, HERC stressed the critical importance of conducting regular safety audits at all power generation facilities to ensure secure and reliable operations.
Financial Requirements and Cost-Saving Mandates
The hearing also revealed the substantial revenue requirements projected by the two corporations for the coming years. HVPN has sought an Annual Revenue Requirement (ARR) of Rs 2,739.96 crore for the fiscal year 2026–27. This marks an increase from its ARR of Rs 2,496.58 crore for the previous year.
Similarly, HPGCL has demanded a revenue of Rs 210.47 crore for the financial year 2026–27. In response to these submissions, the commission directed HVPN to secure loans for its projects at the lowest possible interest rates available in the market. Additionally, HVPN was ordered to achieve minimum savings of Rs 25 crore in the next financial year.
Insistence on Independent Audit Over Internal Reviews
During the proceedings, HPGCL informed the commission that retired engineers from major public sector undertakings like BHEL and NTPC had previously conducted technical audits at their plants. However, the HERC panel was not satisfied with this arrangement and reiterated its stand. It insisted that truly independent, third-party audits must be carried out to ensure objectivity.
The commission has directed HPGCL to submit the complete details and findings of all previous audits to the regulatory body for examination. This move underscores HERC's commitment to enhancing transparency and operational efficiency within Haryana's power distribution and generation infrastructure.
