Haryana power employees end strike after state tells HERC not to operationalise parallel licences

Section 108 lets the regulator be guided by the state government on matters of public interest, and the government's decision is final where a direction concerns policy. The letter, signed by the Chief Minister and the Energy Minister under Section 108(1), tells the regulator not to "create, operationalise or effectuate any parallel distribution licence". It cites consumer and public interest and the financial implications for the state, and says the government had received reports of agitation and worry among the public, farmers, consumers and employees.

The letter lists the objections to the Eleven Power licence. The company is said not to meet requirements on the minimum area of supply, capital adequacy, creditworthiness, technical capability and universal service obligations. The government also cites worries about the selective acquisition of high-revenue consumers, cross-subsidies, existing power purchase commitments, stranded costs, duplicated distribution infrastructure, and the financial burden on the existing distribution company and its customers. It says it is not examining whether the regulator's findings were correct, and that it issued the directive as a policy matter with the Chief Minister's approval. A copy went to the employees' leaders.

The letter stops the regulator from creating or operationalising parallel licences, but the reports do not say what happens to the licence already granted to Eleven Power. Vij said the government and the employees stand together against parallel licences and that a review petition is being prepared. On Wednesday the government had said it would go to the Appellate Tribunal for Electricity against the regulator's order, and the reports on Friday do not mention that route. The company has not commented.

The cost of two days

The strike was called by the Haryana Electricity Employees and Engineers Joint Struggle Front and involved about 40,000 regular, contract and outsourced staff, with national union leaders and most of the Samyukt Kisan Morcha backing it. Staff burnt effigies of the Chief Minister and the regulator's chairman. Officers were called back from leave, technical staff were requested from four other states, and local bodies were told to keep hospitals and the Metro supplied. The strike caused blackouts in several villages and urban areas, and residents blocked roads in protest in places. In Gurugram more than 3,000 complaints were logged in the first 12 hours, industrial units in Sector 37, Kadipur and Basai halted work, and water supply was hit where pumps stopped. The employees had argued that the licence threatened the public distribution system and could hurt farmers, poorer consumers and staff. For the government the settlement is a relief after public anger over the cuts, and the employees said supply would be restored immediately.