Gurgaon: Haryana has eased electricity regulations to reduce costs and improve operational flexibility for industrial and commercial consumers.Haryana Electricity Regulatory Commission (HERC) has raised the threshold for surcharge-free excess demand from 105% to 110% of a consumer’s approved contract demand (CD), allowing factories and businesses to absorb temporary spikes in electricity use without penalty. A 20% surcharge will now apply to consumption between 110% and 115% of sanctioned load, while the existing 25% surcharge continues beyond 115%.The regulator has also simplified the process for reducing and restoring sanctioned load. Consumers can now restore their original sanctioned load within three years without paying fresh service connection charges, subject to specified conditions.The reforms are expected to benefit Haryana’s over 1.2 lakh registered MSMEs and thousands of larger industrial units — including factories, warehouses, malls, hotels and commercial establishments that see seasonal or production-driven spikes in demand — by lowering operating costs, improving production flexibility and cutting procedural hurdles, while retaining safeguards against misuse and electricity theft.CD is the maximum electricity load a consumer is sanctioned by the distribution company — for a factory, effectively its booked capacity. Under the earlier regime, consumers drawing more than 5% above their approved CD had to pay a 25% surcharge on their entire electricity bill, meaning even a marginal overshoot attracted a steep penalty.The revised slabs mean industries can temporarily ramp up production to meet export orders or seasonal demand as long as they stay within the new threshold.HERC has also amended Duty to Supply Electricity on Request, Power to Recover Expenditure Incurred in Providing Supply and Power to Require Security Regulations, 2016 (Fourth Amendment), 2026, making it cheaper and simpler for consumers to reduce and later restore their sanctioned load.Consumers reducing sanctioned load without changing voltage level will now pay only a processing fee, capped at Rs 20,000 — down from the higher costs and procedural complexity involved earlier. Where the reduction involves a shift from high-tension (HT) to low-tension (LT) supply, service connection charges will be calculated only on the revised sanctioned load.The amended rules allow consumers to restore their original sanctioned load within three years without paying fresh service connection charges, subject to specified conditions. A six-month lock-in period applies after any reduction or restoration, only one of each is permitted within the three-year window, and restoration will be allowed only once the distribution licensee confirms adequate system capacity is available. Any meter replacement required for restoration must be paid for by the consumer.The facility will not be available to consumers with outstanding dues, pending disputes before courts or other competent authorities, or cases involving electricity theft or unauthorised use.Industry representatives welcomed the move. “Many manufacturing units see temporary spikes in demand because of export orders or seasonal production, and even a small increase earlier attracted a heavy surcharge. The revised norms will cut unnecessary costs and give industries more flexibility in planning production,” said Pawan Yadav, president of IMT Industrial Association, Manesar.Industrialist Pradeep Multani said the decision would improve ease of doing business. “Allowing restoration without fresh service connection charges within three years will save both time and money, especially for MSMEs,” he said.
