Eleven Power to pursue legal remedies after HERC halts licence process

Medanta co-founder Sunil Sachdeva-led Eleven Power Private Ltd (EPPL) has said it will pursue legal remedies after the Haryana Electricity Regulatory Commission (HERC) halted the process of granting it a parallel electricity distribution licence for Gurugram and Nuh.

“We hold both the Commission and the State Government in the highest regard, and we will continue to engage with them in the same respectful and constructive manner in which we have engaged throughout. We will pursue the remedies available to us under law,” the company said in a statement.

The Commission had on October 19 allowed the grant of a parallel distribution licence to EPPL for 25 years for the two districts and directed the company to convey its willingness to accept the licence within one week. After receiving EPPL’s acceptance, the Commission was required to publish a public notice.

Eleven Power conveyed its acceptance of the distribution licence, along with the stipulated terms and conditions, to the regulator on October 21.

Two days later, on October 23, EPPL informed HERC that it was taking the necessary steps towards implementation of the licence. The company also requested the regulator to provide advance intimation and an opportunity for a hearing in respect of any proceedings or applications concerning approval of the licence.

On October 26, the Commissioner and Secretary to the Government of Haryana issued a directive to HERC under Section 108(1) of the Electricity Act, stating that no parallel distribution licence should be created or operationalised anywhere in the state.

Section 108(1) of the Electricity Act states that in the discharge of its functions, the State Commission shall be guided by directions given in writing by the state government on matters of policy involving public interest.

The Haryana government’s directive came after widespread protests by employees of the state-run power distribution company Dakshin Haryana Bijli Vitran Nigam (DHBVN), which is the existing distribution licensee in the area.

The Commission, in an order on October 28, rejected EPPL’s request for advance intimation and an opportunity for a hearing.

HERC cited Sections 108(1) and 108(2) of the Electricity Act. Section 108(2) states that the state government’s decision on whether a question relates to a matter of policy involving public interest is final.

“The directions dated 26 October have been issued in writing under Section 108(1) and apply generally throughout the State of Haryana. No adjudicatory exercise is left for the Commission to undertake in giving effect to them, and no lis is pending before it in which EPPL’s rights are to be determined afresh,” HERC said in its October 28 order.

The Commission further said that, in view of the Haryana government’s directions under Section 108 of the Electricity Act, it had decided not to proceed further in the matter for as long as the state government’s directions remained operative.

The order was passed by Mukesh Garg, officiating chairman, and Shiv Kumar, member, HERC.

EPPL said Gurugram and Nuh deserved reliable power supply and consumer choice similar to that available in Mumbai.

“Gurugram and Nuh deserve world-class, reliable power and real consumer choice, as Mumbai has had for decades. Eleven has been part of building Gurugram for many years, and our commitment to its people and to Nuh is unchanged. We will continue to work with all stakeholders in the larger interest of consumers and the state,” the company said.

The development comes at a time when the central government is experimenting with parallel licensing amid muted progress in power distribution company privatisation.

Applications for parallel distribution licences across the country have gained momentum in recent months, with Tata Power, Adani Electricity and Torrent Power applying for licences in areas of Maharashtra, Karnataka, Chhattisgarh and Goa.

The Andhra Pradesh government has also given Google a deemed distribution licence for its 1 gigawatt artificial intelligence (AI) data centre hub near Visakhapatnam.