HERC for Modernisation, Efficiency in Power Distribution System
•February 11, 2026
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Why It Matters
Reducing losses and introducing consumer choice can lower tariffs, improve service quality, and set a benchmark for regulated power markets in India.
Key Takeaways
- •AT&C losses at 11.67% for DHBVN.
- •ARR 2026‑27 targets Rs 51,156.71 crore.
- •Potential consumer‑choice model mirrors telecom sector.
- •Public hearings scheduled across six Haryana districts.
- •Commission balances consumer costs with distributor finances.
Pulse Analysis
The Indian power sector continues to grapple with high aggregate technical and commercial (AT&C) losses, which erode utility revenues and inflate consumer tariffs. Haryana’s Electricity Regulatory Commission (HERC) is tackling this challenge by urging its distribution companies to modernise networks, adopt smart‑grid technologies, and tighten loss‑reduction programmes. Chairman Nand Lal Sharma highlighted efficiency as the backbone of a resilient grid during a recent public hearing, emphasizing that upgraded infrastructure not only curbs technical losses but also improves outage response and service quality for the state’s 45‑million‑plus customers.
The regulator’s Annual Revenue Requirement (ARR) filing for 2026‑27 projects a total need of Rs 51,156.71 crore, while existing tariff collections are expected to generate Rs 52,761.87 crore, suggesting a nominal surplus of Rs 1,605.16 crore. However, after accounting for historic revenue gaps up to 2024‑25, HERC anticipates a shortfall of Rs 4,484.71 crore, underscoring the financial pressure on distribution utilities. By aligning revenue targets with loss‑reduction targets, HERC aims to prevent cost pass‑throughs to consumers, preserving affordability while ensuring distributors remain financially viable. This disciplined approach also aligns with national targets for loss reduction.
One of the more ambitious proposals discussed at the hearing is granting electricity consumers the freedom to select their supplier, a model borrowed from the telecom industry. If implemented, this could stimulate competition, drive service innovation, and further incentivise loss‑reduction across Haryana’s distribution firms. HERC’s series of public hearings—already held in Panchkula and Gurugram and slated for Panipat, Hisar and Yamunanagar—are designed to capture stakeholder feedback and build consensus around such reforms. Successful rollout would position Haryana as a benchmark for consumer‑centric power markets in India.
HERC for modernisation, efficiency in power distribution system
Haryana's power regulator is focusing on efficiency and network upgrades. The state's electricity distribution companies must cut losses and boost consumer satisfaction.
Source: PTI
Published on Feb 11, 2026 at 03:06 PM IST
Haryana Electricity Regulatory Commission (HERC) Chairman Nand Lal Sharma said efficiency is the backbone of a strong power system and stressed the need to modernise and strengthen the state's power distribution network.
Addressing a public hearing in Gurugram on the Annual Revenue Requirement (ARR) for 2026‑27, Sharma said power distribution companies must focus on reducing Aggregate Technical and Commercial (AT&C) losses and improving consumer satisfaction to remain competitive.
He added that the option of giving electricity consumers the freedom to choose their service provider, similar to the telecom sector, is being explored for the future.
The hearing was presided over by Sharma along with HERC members Mukesh Garg and Shiv Kumar to invite suggestions and objections on the ARR petition filed by Dakshin Haryana Bijli Vitran Nigam (DHBVN).
DHBVN Managing Director Vikram Singh and representatives of various industrial bodies from Gurugram, Manesar, Sohna and other areas attended the hearing.
As per the ARR petitions, the power distribution corporations have projected a total revenue requirement of Rs 51,156.71 crore for 2026‑27, while revenue at existing tariffs is estimated at Rs 52,761.87 crore, showing a surplus of Rs 1,605.16 crore. However, after adjusting past revenue gaps up to 2024‑25, a deficit of Rs 4,484.71 crore has been indicated.
Singh said DHBVN has around 45.12 lakh consumers and its AT&C losses stand at 11.67 percent. He said steps are being taken to further reduce losses and improve consumer services.
Sharma said the Commission's role is to balance consumer interests with the financial needs of distribution companies, while ensuring that unnecessary costs are not passed on to consumers.
He added that public hearings are being held at different locations to make it easier for consumers from remote areas to participate.
The Commission has already held hearings in Panchkula and Gurugram, and will conduct further hearings in Panipat on February 24, Hisar on February 25 and Yamunanagar on March 2.
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