Haryana Power Companies Ordered to Conduct Third-Party Audits

A public hearing at the Haryana Electricity Regulatory Commission (HERC) today resulted in a directive for power companies in Haryana to carry out third-party audits of all thermal power plants. This decision comes as part of the annual revenue requirement (ARR) petitions filed by the Haryana Vidyut Prasaran Nigam (HVPN) and Haryana Power Generation Corporation Limited (HPGCL) for the financial year 2026–27.

During the hearing, HERC Chairman Nand Lal Sharma and members Mukesh Garg and Shiv Kumar emphasized the necessity of independent audits to ensure accountability and transparency. They instructed officials from both companies to address the proper utilization of ash generated by the plants and to establish an ash management committee. The importance of conducting safety audits for power plants was also underlined.

On behalf of HPGCL, it was noted that retired engineers from BHEL and NTPC currently conduct technical audits. Despite this, the commission insisted on the need for independent third-party evaluations and directed HPGCL to submit details of past audits for review. Questions were raised regarding the quality of coal used in the plants, which HPGCL officials defended with satisfactory explanations.

Financial Proposals and Requirements

The hearings began with the HVPN, which has requested an ARR of Rs 2,739.96 crore for the 2026–27 fiscal year, an increase from Rs 2,496.58 crore in the previous year. In comparison, HPGCL has sought Rs 210.47 crore as revenue for the same period. To ensure financial prudency, the commission instructed HVPN to secure loans for its projects at the lowest possible interest rates. Additionally, the HVPN was tasked with achieving minimum savings of Rs 25 crore in the upcoming financial year.

The emphasis on rigorous auditing and financial responsibility reflects a growing commitment to transparency and efficiency in the energy sector in Haryana. As the region looks to enhance its energy infrastructure, the steps taken during this hearing could play a crucial role in shaping its future operations.

The outcomes of these directives will be closely monitored in the coming months as the power companies work to implement the necessary changes and respond to the commission’s requirements.