Haryana’s power regulator has raised serious concerns over state power utilities’ short-term power procurement strategy, pointing out discrepancies in the power demand and supply availability data provided by the Haryana Power Purchase Centre (HPPC).
In a March 17 interim order, the Haryana Electricity Regulatory Commission (HERC) stopped short of approving HPPCs proposal to purchase 1,345 MW round the clock short term power from May 1, 2026, to September 30, 2026, at ₹6.10 per unit and sought detailed clarifications.
The regulator in its order said that the power demand-supply position for the 2026-27 financial year prepared by HPPC is showing deficit of 1,601 MW, 3,193 MW, 3,266 MW, 2,089 MW and 958 MW, for May, June, July, August and September, 2026, respectively.
“Whereas, in another petition (3 of 2026), HPPC has shown a deficit of 323 MW, 1,048 MW and 436 MW, for June, July and September, 2026, respectively. Therefore, the power deficit scenario prepared by HPPC is not convincing,’’ the regulator said.
‘Power procured at higher rates but surplus power sold at lower prices in open market’
The Commission said that HPPC purchased 6,965 million units (MUs) of short-term power through competitive bidding during 2024-25 fiscal, costing ₹4,554 crore at an average rate of ₹6.54 per unit. “In addition, 1,050 MUs were procured on short-term basis from the power exchanges, amounting to ₹596 crore, at an average rate of ₹5.67 per unit during the same period. The above data indicated that the average procurement rate from the power exchanges was lower than the rate discovered through the bidding process,’’ the regulator noted.
The regulator pointed out that at the same time, HPPC sold 4,721 MUs of power in the power exchanges during 2024-25 fiscal, earning ₹2,248 crore at an average rate of ₹4.76 per unit. “This reflects a situation where power was procured at relatively higher rates while surplus power was subsequently sold in the power exchanges at comparatively lower rates,’’ the Commission pointed out.
The regulator said that such a trend warranted prudence in demand forecasting, power procurement planning, and portfolio optimisation to avoid situations where costly power was procured and surplus power was disposed of at lower market rates, thereby potentially impacting the overall power purchase cost and ultimately the tariff payable by consumers. “Thus, HPPC needs to re-work on its power procurement strategy,’’ reads the March 17 interim order signed by HERC chairman, Nand Lal Sharma and members, Mukesh Garg and Shiv Kumar.
Referring to the resource adequacy plan prepared by the Central Electricity Authority (CEA), the Commission observed that Haryana is largely a power-surplus state, with shortages primarily limited to peak summer months of June and July. It further noted that electricity is often available at lower prices on power exchanges, especially during solar hours.
‘What’s the status of long-term power tied up with Tata’s Coastal Gujarat Power Ltd, Mundra?’
Seeking a revised realistic demand-supply position, the regulator has sought response from HPPC on reasons for variations in the demand-supply position, detailed cost-benefit analysis of procuring the short term RTC power vis-à-vis procurement of power through Indian Energy Exchange, without any obligation of round the clock power, details regarding the period since when the 380 MW power contracted from Coastal Gujarat Power Ltd (CGPL), Mundra, has not been scheduled the applicable rate of such power, and the fixed charges paid during the said period and current status of the long-term power tied up with CGPL, Mundra.
The Commission said that in order to ensure transparency, the general public should be given an opportunity of being heard before approving such short-term power procurement at higher prices, the cost of which is ultimately borne by the electricity consumers of the state. The Commission said the next hearing in the present case will be conducted as a public hearing on April 7 to ensure transparency and invite participation from all stakeholders and the general public.