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In a landmark proceeding on March 27, 2024, the Haryana Electricity Regulatory Commission (HERC) deliberated on a pivotal petition filed by Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), a key distributor and supplier of electricity across several districts in Haryana. UHBVNL sought the Commission’s approval to amend or relax the regulations concerning the financial responsibilities tied to the establishment of high-capacity transformers for electric vehicle (EV) charging stations, under the corporate social responsibility (CSR) fund allocations.
The crux of UHBVNL’s petition hinged on the specifics of Clause 17(f) from the HERC (Terms and Conditions for Setting Up Charging Infrastructure Tariff and Other Regulatory Issues for Electric Vehicles) Regulations 2021. This clause mandates that distribution companies (Discoms) like UHBVNL use CSR funds to cover the costs associated with setting up separate or dedicated transformers for EV charging stations, especially those requiring connections for loads exceeding 50 KW.
UHBVNL presented its case by highlighting the significant financial and operational challenges this requirement posed. The utility company emphasized the disproportion between the hefty financial investment required for installing high-capacity transformers—estimated at a total cost of approximately ?4.77 Crores for seven 10 MVA power transformers—and its allocated CSR budget of ?4.36 Crore for the fiscal year 2023-24.
Moreover, UHBVNL pointed out that the rigid application of Clause 17(f) could potentially divert essential CSR funds away from other vital community and environmental projects, including but not limited to, the development of libraries, sports complexes, and support for specially-abled children. This diversion, UHBVNL argued, was neither feasible nor in the broader interest of the state’s sustainable development goals.
In response to these concerns, the HERC carefully reviewed the petition’s arguments and the regulatory framework guiding EV charging infrastructure. The Commission acknowledged the importance of promoting EV adoption to ensure environmental sustainability and reduce the carbon footprint of transportation. However, it also recognized the practical difficulties and financial constraints highlighted by UHBVNL.
Consequently, the HERC decided not to immediately amend or relax Clause 17(f) as requested but instead, acknowledged the need for a thoughtful reassessment of the regulation. The Commission announced its intention to amend the relevant regulations after conducting a comprehensive review and following due process, including public consultation.
This decision underscores the HERC’s commitment to balancing the advancement of green mobility solutions with the economic realities faced by utility providers. It also reflects a broader understanding of the complexities involved in transitioning to a more sustainable energy and transportation ecosystem. As the HERC proceeds with its regulatory review, stakeholders eagerly anticipate a resolution that will facilitate the continued growth of EV infrastructure while ensuring the effective use of CSR funds for the broader benefit of society. |
