Gurgaon Electricity Update: New power company, more choice? Eleven Power gets 25-year licence; What it means for 8.3 lakh consumers

Haryana Electricity Regulatory Commission (HERC) has granted a 25-year electricity distribution licence to private company Eleven Power for Gurgaon and Nuh, allowing it to operate alongside state-run distribution utilities and potentially give more than 8.3 lakh consumers a choice of electricity supplier. The order, issued on October 19, marks the first parallel electricity distribution licence granted in Haryana and is among the relatively few such approvals in India under the Electricity Act, 2003. The licence covers Gurgaon, Manesar, Sohna and Nuh. However, consumers will not be able to switch electricity suppliers immediately. Transfers will be permitted only after HERC approves a consumer migration protocol addressing outstanding dues, metering and other operational requirements.

Eleven Power has proposed an investment of Rs 4,716.7 crore over five years, from 2026-27 to 2030-31, to develop its distribution network.

Read more - Cut 2 hours on road! Delhi-Sohna drive may shrink from 3 hours to 45 minutes as DND-Sohna expressway nears inauguration; What Nitin Gadkari has planned

Eleven Power licence: Which areas and consumers will be covered?

The licence covers all categories of electricity consumers across the designated areas, including households, agricultural consumers, shops, offices and industrial establishments.

Once the network is developed and the required approvals are secured, eligible consumers could have the option of choosing between Eleven Power and the existing state-run distribution companies, Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN).

Read more - Nepal Priyagold Biscuits Ban: Why Indian brand's licence was suspended; what 'dangerous' substance did FSSAI flag?

The company has told HERC that it will supply electricity on a “non-discriminatory basis to all categories of consumers” and provide new connections within the timelines specified in the commission's Electricity Supply Code.

HERC accepted Eleven Power's phased rollout plan and rejected objections that the company might concentrate on commercially attractive urban areas while neglecting rural and agricultural consumers.

The commission said the proposed rollout was consistent with the universal service obligation under the Electricity Act, which requires distribution licensees to meet their obligations towards consumers across their licensed areas.

In its order, HERC said, “... the Commission is of the considered view that the operation of a parallel distribution licensee, providing electricity consumers with a choice of supplier and promoting competition in the electricity distribution sector, assumes particular significance in the present circumstances.”

Rs 4,716 crore investment planned over five years

Eleven Power has proposed a capital expenditure of Rs 4,716.7 crore between 2026-27 and 2030-31 to establish its distribution infrastructure and supply operations.

Of the total investment, Rs 4,650.4 crore has been allocated to the wire business, covering the distribution network, while Rs 66.4 crore has been earmarked for the supply business.

The company has set aside Rs 304.4 crore, or around 6.5% of the proposed capital expenditure, for Nuh. Network development in the district is scheduled to begin in the first phase.

The investment comes as electricity demand in Gurgaon, Manesar, Sohna and Nuh is expected to rise with the expansion of residential, commercial and industrial developments.

Projections submitted by Eleven Power, based on growth rates approved by HERC, estimate annual electricity sales across the licensed area will increase from around 12,220 million units in FY25 to approximately 18,224 million units by FY31.

Smart meters, underground cables and renewable power plans

Eleven Power plans to develop a technology-driven network focused on supply reliability, digital services and renewable energy.

According to a TOI report, Sunil Sachdeva, chairman of Eleven Power, said the network had been designed with N-1 redundancy, a supervisory control and data acquisition (SCADA)-enabled high-tension network, and a distribution management system.

“Underground cabling is planned across Gurgaon, while Nuh will have a mix of underground and overhead networks,” Sachdeva said.

The company also plans to introduce smart meters, digital billing and customer relationship centres. Its proposed service standards cover reliable electricity supply, transparent billing, faster grievance redressal and digital customer services.

Eleven Power has proposed sourcing 80% of its electricity requirement from renewable sources, including firm and dispatchable renewable energy and the Green Day Ahead Market. The remaining 20% is proposed to come from thermal power.

The company will need to secure transmission connectivity and statutory clearances, complete system-safety studies, establish interconnection arrangements with Haryana Vidyut Prasaran Nigam and comply with applicable grid and scheduling requirements before beginning commercial operations.

Pending electricity connections in Haryana: What HERC data shows

The new licence comes amid a substantial backlog of applications for electricity connections and load enhancement at Haryana's existing distribution utilities.

Data cited in HERC's order showed that, as of September 30, 2025, UHBVN had 20,603 pending applications involving a load of 770.4 MW. DHBVN had 1,08,590 pending applications involving 1,642.5 MW as of October 1, 2025.

The combined pending load stood at 2,413 MW, compared with 2,403.8 MW on April 1, 2025. The commission expressed concern that the backlog remained substantial despite the release of several connections.

Commercial establishments, industrial units and high-rise residential buildings in the region also continue to rely on diesel generators during power outages, adding to the importance of reliable electricity distribution as demand grows.

However, the grant of a licence does not mean that consumers can immediately move to Eleven Power or that the new network will be available everywhere at once.

When can Gurgaon and Nuh consumers switch electricity suppliers?

Eleven Power must seek HERC's approval for a consumer migration protocol within 60 days of the licence being granted. The framework will cover matters such as outstanding dues, metering and the operational arrangements required for switching suppliers.

Consumers will be able to migrate only after the commission approves the protocol and the applicable arrangements are in place.

The company must also communicate its acceptance of the licence and its conditions within one week of the order's issuance, followed by the remaining regulatory and technical approvals needed to begin commercial supply.

HERC has clarified that the decision applies specifically to Gurgaon and Nuh. It does not create an automatic entitlement for other applicants seeking parallel electricity distribution licences elsewhere in Haryana.

The new licence therefore establishes the regulatory framework for competition in the two districts, while the timing of consumer choice will depend on network development, statutory clearances and HERC's approval of the migration process.


Inputs from TOI