Procedural History

Objections & Hearing

Order of the Commission

Distribution & Retail Supply Licence to UHBVNL

Distribution & Retail Supply Licence to DHBVNL

HARYANA ELECTRICITY REGULATORY COMMISSION

PANCHKULA, HARYANA 

CASE NO. HERC/PRO – 2/99, HERC/PRO-3/99, HERC/PRO-4/99 

Date of Order: 04.11.2004 

In the matter of the application filed by Haryana Vidyut Prasaran Nigam Limited (HVPNL) having its registered office at Shakti Bhawan, Sector-6, Panchkula for surrender of Distribution & Retail Supply Licence of HVPNL and grant of separate Distribution & Retail Supply Licence to Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Ltd. (DHBVNL) in the state of Haryana.

ORDER

This order withdraws the licence granted to HVPNL for Distribution and Retail Supply Business (Licence no.- 2 of 1999).

This order further issues separate licences for Distribution & Retail Supply to DHBVNL and UHBVNL for operation in their respective area of supply in the State of Haryana.

1.        Procedural History:

The Commission vide order dated 4^th February 1999 issued two licences to HVPNL for operation in the State of Haryana: a licence for Transmission and Bulk Supply business (Licence no.- 1 of 1999) and a licence for Distribution and Retail Supply business (Licence no.- 2 of 1999).

Further, vide order dated 21^st April, 1999, the Commission granted permission to HVPNL for holding the Distribution undertakings and to carry on the distribution and retail supply business pertaining to the North Area comprising operation Circles of Ambala, Kurukshetra, Yammunanagar, Karnal, Sonepat, Rohtak and Jind through and in the name of Uttar Haryana Bijli Vitran Nigam Ltd. and pertaining to the South Area comprising operation circles of Faridabad, Gurgaon, Narnaul, Bhiwani, Hisar and Sirsa through and in the name of Dakshin Haryana Bijli Vitran Nigam Ltd.; the said two companies being subsidiaries of HVPNL. The Commission also directed that the subsidiary companies should submit their applications for separate Distribution and Retail Supply Licence within a period of 3 months from the issue of said order.

Pursuant to the direction of the Commission, UHBVNL and DHBVNL filed separate application for grant of Distribution and Retail Supply Licence on 20^th July 1999.  The first public hearing on their application were held on 10.1.2000. The second and concluding Public hearing was held on 27^th March 2000. During the course of hearing it was established that the interface metering between HVPNL and two Discoms - UHBVNL and DHBVNL was not complete. In the absence of complete & proper metering arrangements, the Commission opined that two applicant companies cannot account in absolute terms for drawl of energy from the HVPNL’s system and, hence, directed the licensee to complete the interface metering before the independent licence could be granted to them.

Subsequently Vide letter No. CH-27/SE/RAU/F-5/Vol- X dated 22.10.2002, HVPNL submitted that the interface metering has now been completed and, hence, the application for grant of independent licences to UHBVNL & DHBVNL and for surrender of D&RS licence of HVPNL may be considered by the Commission.

The issue was once again reviewed particularly in the light of the changes due to enactment of Electricity Act, 2003. Resultantly two applicant Companies were asked to update their application for grant of independent D& RS licence.

The Notice for holding public hearing on the updated applications was published in two newspapers Hindustan Times and Dainik Bhaskar on 22.04.2004. The public objections/comments to the grant of independent licence were invited by 13^th May 2004. The public hearing was held on 18^th May 2004 at Panchkula.

The Commission vide Memo No. HERC/PRO-2/99/147-49 dated 23.4.2004, directed the Managing Directors of UHBVNL, DHBVNL & HVPNL to submit the details of those inter-utility interface metering points where Special Energy Meters (SEMs) are not installed and their status.  How is the billing taking place at these locations in the absence of SEMs? What is the status of preparedness for the introduction of billing based on ABT principles between HVPNL and DHBVNL & UHBVNL? What is the status of software, which was to be installed for this purpose? In the absence of any area controllers in the respective areas of Discoms, how Discoms plan to carry on the operational requirements of Daily/ Monthly /Yearly scheduling and monitoring of power supply based on ABT principles?

In reply HVPNL, vide its Memo No. CH-126/SE/RAU/F-5/ Vol. XII dated 13.05.04, submitted that there are 76 such interface metering points where SEMs are not installed as on 31.03.2004. However, the conventional energy meters installed at these interface points are used to record energy flow for billing purpose. The software required for billing based on ABT principles, is reported to be under advance stage of finalisation.

Objections & Hearing:

In response to the public notice, no written objection was received by the Commission by any objector. However Mr Parmesh Bindal was present during the hearing on 18^th May 2004.

The Commission once again raised the issue of installation of special energy meters at the interface points for accurate accounting of energy drawn by UHBVNL & DHBVNL and establishment of Area Controllers in the respective areas of supply of Discoms to fulfil the operational requirement of daily/monthly/yearly scheduling and monitoring of power supply based on the ABT principles.

The representatives of HVPNL assured the Commission that the same would be implemented at the earliest and hence independent Distribution & Retail Supply licence may be granted to UHBVNL and DHBVNL.

ORDER OF THE COMMISSION

1.              In view of the facts placed before the Commission, the Commission directs that

(a)        the HVPNL shall complete the installation of special energy meters at 76 points by 31^st July 2005.

(b)    the HVPNL shall ensure to provide special energy meters and its associated metering CTs/PTs right at the time of commissioning of a grid substation to avoid the present spectre.

(c)   UHBVNL & DHBVNL shall establish a computerised, state-of-the-art Area Load Despatch Centre by 30th June 2006 so that operational activities can be carried out effectively. However, during the transition period for one year HVPNL would continue to provide all logistical and operational support to the Distribution licensee i.e. DHBVNL and UHBVNL.

2.             The Commission accepts the surrender of Distribution and Retail Supply Licence granted to HVPNL.

3.            In light of the above, the Commission grants the following two enclosed licences on the terms and conditions contained therein:

(a)       Distribution and Retail Supply Licence to Utter Haryana Bijli Vitran Nigam Limited (UHBVNL)  (Licence No. DRS -1 of 2004).

(b)   Distribution and Retail Supply Licence to Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) (Licence No. DRS-2 of 2004).

4.           This order is signed dated and issued by Haryana Electricity Regulatory Commission on 4^th November 2004.

Place: Panchkula
Dated: 04.11.2004