Section 135 in Regular Licence under Haryana Electricity Regulatory Reforms Act
135. Commission view.
- We believe these comments stem from a misapprehension of the Commission's role in procurement. In the model of the power sector adopted by the Government of Haryana, the Licensee will act as a single purchaser of power for the needs of the State and will be the sole source of electricity to the distribution entities. These are statutorily protected monopolies. As such they are clearly free from the disciplines of market competition. Under the assumption that the tariffs available to distribution companies would pass on the costs of bulk power purchases, the inability to utilise other suppliers means that the distributors would simply have to accept the dictates of the bulk supplier. More importantly, the bulk supplier would be under no pressure to purchase its power supplies in an economic and efficient manner. The distributors would be unable to avoid any such inefficiencies. In the regulatory model discussed above, the Commission must assume the duty of disciplining the procurement process through transparency and competition in the absence of market forces.
