The Haryana Electricity Regulatory Commission (HERC) decided on October 19 to grant Eleven Power Private Limited a 25-year licence to distribute electricity alongside Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) in Gurugram and Nuh. The decision triggered a strike by electricity employees. The state government subsequently invoked Section 108 of the Electricity Act, 2003, directing the regulator not to operationalise parallel distribution licences anywhere in Haryana.
The confrontation comes amid a national push to introduce greater competition in electricity distribution, backed by Union Power Minister and former Haryana Chief Minister Manohar Lal Khattar.
How Eleven Power’s Licence Triggered an Electricity Crisis in Haryana
HERC’s order permits Eleven Power to develop a distribution network in an area already served by DHBVNL. As the private company expands its network, more than 830,000 consumers could eventually have the option of choosing between the two electricity distributors.
Eleven Power has proposed an investment of ₹4,717 crore over five years. Electricity supply is expected to begin in 2027-28, subject to the necessary clearances and infrastructure development.
Under the parallel distribution model, two licensed companies can supply electricity within the same geographical area while the existing state utility continues to operate. Consumers can choose their supplier once the new distributor’s network reaches their area.
The proposed arrangement has faced opposition from the state government and electricity employees, who have raised concerns about employment, consumer interests and the financial position of state-run distribution utilities.
Why HERC Approved Eleven Power’s Electricity Distribution Licence
HERC is Haryana’s statutory electricity regulator, responsible for granting licences, regulating tariffs and overseeing aspects of electricity supply and service quality. Its decisions are governed by the Electricity Act, 2003, and the state’s regulatory framework.
Eleven Power applied for a licence under Sections 14 and 15 of the Act. HERC approved the application despite objections from state-owned distribution companies and employee representatives.
One of the key considerations was the backlog of applications for new electricity connections and increases in sanctioned load. As of October 1, 2025, DHBVNL had 108,590 pending applications involving 1,642.542 megawatts (MW) of load. Uttar Haryana Bijli Vitran Nigam Limited had another 20,603 applications involving 770.407 MW.
Together, the pending applications represented a load of approximately 2,412 MW.
The state government had opposed Eleven Power’s proposal, citing concerns over capital adequacy, technical preparedness and the company’s ability to fulfil its universal service obligations.
Why Haryana Is Concerned About Private Electricity Distribution
The central concern is the potential financial impact on DHBVNL if private competition draws away consumers who contribute a significant share of its revenue.
Gurugram and Nuh account for 35.23 per cent of DHBVNL’s electricity sales and 42.98 per cent of its revenue of ₹9,493.75 crore in 2025-26.
DHBVNL has argued that losing commercially attractive consumers could weaken its revenue base while leaving it responsible for fixed infrastructure costs and existing power purchase commitments.
Cross-subsidies are another concern. Revenue from some commercial and industrial consumers helps support subsidised electricity supplied to households and farmers. If the public utility loses a disproportionate share of its higher-paying consumers, the financial burden on its remaining consumers or the state government could increase.
DHBVNL estimated that a shift of 2.5 per cent of existing electricity sales to Eleven Power could result in a revenue loss of ₹424.12 crore in 2027-28. According to its projections, the loss could rise to ₹1,898.75 crore if the shift reached 20 per cent.
Eleven Power has disputed these concerns, arguing that its plans cover both urban and rural areas. The company has also maintained that much of its projected growth would come from new connections rather than consumers switching from DHBVNL.
HERC’s order treated the potential financial consequences as matters for subsequent regulatory assessment rather than sufficient grounds to reject the licence.
Khattar Backs Competition as Saini Government Opposes Parallel Licences
The dispute in Haryana is unfolding alongside efforts to establish a broader framework for parallel electricity distribution licensing across India.
Manohar Lal Khattar, the former Haryana Chief Minister and current Union Power Minister, has backed a national framework for parallel distribution licensing. The Union Power Ministry’s consultative committee discussed the proposal in July 2026.
The stated objectives included expanding consumer choice, improving service quality and making more efficient use of distribution infrastructure.
Haryana Chief Minister Nayab Singh Saini’s government has adopted a different position on the licence granted to Eleven Power. It has argued that parallel distribution could harm consumers and the state’s existing electricity utilities.
The government had opposed the company’s application during the regulatory process. Following the employees’ strike, it invoked Section 108 of the Electricity Act, 2003, to direct HERC not to operationalise parallel distribution licences anywhere in the state.
The government’s intervention has helped bring the strike to an end for now, but the dispute over the licence remains unresolved.
Its legal status is a separate question from the government’s direction, and the next steps by HERC and any proceedings before the appellate tribunal will determine how the matter progresses. The outcome will have implications for the proposed entry of private electricity distributors in Haryana and the wider debate over competition in India’s power distribution sector.
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