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Haryana consumers may face another power tariff hike — about 15-17% — as regulator reviewing proposals

According to Haryana Electricity Regulatory Commission (HERC) officials, the regulator is “currently examining tariff and revenue proposals” submitted by UHBVN and DHBVN for the fiscal 2026-27, and a final decision is expected before April 1.

The power sector, already shifting rapidly towards renewable energy, would require an additional $47 billion. (File photo)Haryana power utilities seek 15 to 17 per cent tariff hike for 2026 27 as regulator reviews revenue gap and subsidy claims. (File photo)

From next financial year, power consumers in Haryana may be facing another tariff hike — about 15-17 per cent, if approved, with the state’s power utilities, Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN), pushing for higher rates to bridge widening revenue gaps, even as the regulator proceeds cautiously amid political opposition and public concerns.

According to Haryana Electricity Regulatory Commission (HERC) officials, the regulator is “currently examining tariff and revenue proposals” submitted by UHBVN and DHBVN for the fiscal 2026-27, and a final decision is expected before April 1.

The debate over a new tariff hike comes barely a year after Haryana last witnessed a revision. “In April 2025, HERC approved an increase of around 20-30 paise per unit across several consumer categories, marking the first significant revision in nearly seven to eight years. Before that, electricity tariffs in the state had largely remained unchanged since 2017-18. As a result, despite the 2025 increase, Haryana’s average annual tariff hike over the past decade remains relatively low, estimated at roughly 1 per cent per year or even less when averaged over the full period. The 2025 revision itself translated into an effective one-time rise of around 7-9 per cent for domestic consumers, depending on usage slabs,” officials explained.

For the next fiscal, the two discoms have projected a combined Annual Revenue Requirement of approximately Rs 51,000 crore and have indicated a revenue shortfall of over Rs 4,000 crore after accounting for expected income and government subsidies.

“According to the utilities, rising power purchase costs, transmission expenses, and delays in subsidy reimbursements, particularly related to agriculture and rural supply, have significantly strained their finances. Based on these filings, indicative projections suggest that electricity tariffs across domestic, commercial and industrial categories could rise by around 15-17 per cent if the proposals are approved largely in their current form. Smaller increases of about 5 per cent have been suggested for categories such as private tube wells and electric vehicle charging, though these figures remain provisional,” officials added.

However, the regulator has not yet endorsed these proposed increases.

According to officials, HERC has sought additional data and clarifications from the discoms, particularly on subsidy claims, projected costs and revenue gaps. During recent hearings, the commission stressed the need for financial prudence and directed the utilities to justify their assumptions in detail before any burden is passed on to consumers, they said, adding the regulator has also focused on improving operational efficiency, repeatedly flagging the need to reduce Aggregate Technical and Commercial losses, strengthen billing and collection mechanisms, and ensure reliable power supply.

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The proposed tariff hike has also triggered political and public resistance, with former Haryana power minister Prof Sampat Singh approaching HERC, alleging procedural lapses and a lack of transparency in the tariff-filing process. He also questioned the “justification for large projected deficits” and demanded “deeper scrutiny of capital expenditure plans”, arguing that “inefficiencies should not be compensated through higher tariffs”.

Consumer groups and resident welfare associations have echoed similar concerns, pointing out that structural changes introduced in 2025, such as revised fixed charges, have already increased electricity bills for many households, even where per-unit hikes appeared modest.

For consumers, the prospect of another tariff increase comes at a time of broader inflationary pressures and rising household expenses. While power utilities argue that tariff rationalisation is necessary to maintain financial sustainability and ensure uninterrupted supply, critics warn that sharp increases could strain domestic budgets and hurt industrial competitiveness. Regulatory experts note that “HERC could still moderate the proposed hike, stagger any increases, or even delay the final tariff order depending on how satisfactorily the discoms respond to queries on losses, subsidies and efficiency targets”.

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