Haryana discoms seek relief in fuel surcharge recovery rules, approach HERC

Power distribution companies in Haryana have approached the state electricity regulator seeking relaxation in rules governing the recovery of fuel-related cost variations from consumers, citing financial and cash flow pressures.

The two state-run discoms Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) have filed petitions before the Haryana Electricity Regulatory Commission (HERC) seeking amendments to Regulation 68 of the Multi-Year Tariff (MYT) Regulations, 2024 , for the financial year 2025-26.

At present, any additional expenditure incurred due to fluctuations in fuel prices and power purchase costs is recovered from consumers on a monthly basis through the Fuel and Power Purchase Adjustment Surcharge (FPPAS). However, the discoms have sought relaxation in this mechanism, requesting that the monthly recovery be deferred .

Instead of the existing monthly adjustment, the utilities have proposed to recover the accumulated fuel and power purchase costs in subsequent financial years at a uniform rate of 47 paise per unit across all consumer categories. They have also sought permission to levy carrying costs , arguing that it would help compensate them for the time lag in recovery of dues and improve liquidity management.

The discoms have justified the request on grounds of easing immediate tariff volatility for consumers while allowing utilities to manage accumulated revenue gaps arising from fluctuating fuel prices and procurement costs.

The HERC has not taken an immediate decision and has initiated a public consultation process . A public notice has been issued inviting objections and suggestions from stakeholders, with responses to be submitted by May 1 .

A public hearing will be held on May 14 at 11:30 am at the Commission’s courtroom in Panchkula. Stakeholders who submit objections within the stipulated timeline will be allowed to present their views during the hearing.

The Commission will take a final decision after examining public feedback, aiming to balance the financial viability of power utilities with consumer interest and tariff stability .