Relief for Haryana Electricity Consumers

In a significant move benefiting electricity consumers in Haryana, the government has announced that there will be no increase in electricity bills throughout the financial year 2024-25. This decision stems from a strategic political move, considering the upcoming Lok Sabha and Assembly elections in 2024.

Both electricity distribution companies in Haryana, namely Uttar Haryana Bijli Vitran Nigam (UHBVN) and Haryana Bijli Vitran Nigam (DHBVN), have refrained from proposing any new electricity tariffs for the specified financial year. The companies have jointly filed the Annual Revenue Requirements (ARR) before the Haryana Electricity Regulatory Commission (HERC), estimating a total ARR of Rs 35 thousand crore, including Rs 17.33 thousand crore submitted by USBVN. Remarkably, Haryana's electricity bills have not witnessed an increase, except for the Fuel Rights Adjustment Fee (FSA) imposed and subsequently withdrawn in the financial year 2021-22. This marks three consecutive years without a tariff hike, a decision attributed to the impending 2024 elections.

The primary motivation behind maintaining the current electricity tariffs is the potential political repercussions faced by the ruling AAP government. Opposition parties have consistently criticized the AAP government, particularly regarding electricity issues in Haryana. Notably, the neighbouring state of Punjab, governed by AAP, has implemented a policy providing zero electricity bills to its residents. To avoid any electoral risks, the Haryana government has chosen to uphold the current tariff rates.

Officials from DHBVN have disclosed details from the ARR, proposing approval for power purchases totalling Rs 12,293 crore for the current year. The estimation for electricity consumption stands at 24,871 million units, with a projected line loss of 10.75%. The ARR, filed in November, is scheduled for a hearing before HERC in February 2024.

This strategic decision ensures that consumers in Haryana continue to benefit from stable electricity bills amid the intricate interplay of political considerations and economic necessities.