Haryana’s power regulator has flagged potential “cherry-picking” of profitable consumers and raised concerns about the financial capability, operational preparedness of a 2025 incorporated company, Eleven Power Private Limited, which is seeking a parallel electricity distribution licence for Gurugram and Nuh revenue districts.Haryana’s power regulator has flagged potential “cherry-picking” of profitable consumers and raised concerns about the financial capability, operational preparedness of a 2025 incorporated company, Eleven Power Private Limited, which is seeking a parallel electricity distribution licence for Gurugram and Nuh revenue districts.The regulator has also sought a no objection certificate (NoC) from state transmission utility, HVPN, regarding availability of adequate transmission capacity and general network access for the proposed area of supply as well as its concurrence for use of HVPN land for the establishment of sub-stations and associated infrastructure. A separate NoC has also been sought from the Ministry of Defence.The company has petitioned the Haryana Electricity Regulatory Commission (HERC) seeking grant of a parallel power distribution licence under Sections 14 and 15 of the Electricity Act, 2003. State-owned power distribution company, Dakshin Haryana Bijli Vitran Nigam (DHBVN) at present exclusively serves electricity consumers in the two districts.‘Justify market valuation of holding company, clarify inconsistencies’Following a hearing, the regulator in its May 26 interim order directed Eleven Power to furnish a detailed justification for adopting the market value of its holding company - M/s SAS Fininvest LLP - in preference to its book value, for the purpose of assessing net worth and financial capability, particularly when Eleven Power’s authorised share capital is only ₹100 crore as against the proposed equity contribution requirement of ₹1415.02 crore. The next hearing is on July 8.The commission headed by chairperson, Nand Lal Sharma, noted apparent inconsistencies as Eleven Power was incorporated in June 2025, has an authorised share capital of ₹100 crore and paid-up share capital of just ₹1 crore, but has proposed to infuse equity of ₹1,415.02 crore.“The petitioner has proposed a capital expenditure of ₹4716.73 crore to be financed through an equity contribution of ₹1415.02 crore and debt of ₹3301.71 crore. In support of its financial capability, the petitioner placed on record a May 6, 2026, certificate of chartered accountants certifying that the net worth of M/s SAS Fininvest LLP, the holding company of the petitioner is ₹94.95 crore (as on October 30, 2025) on book value basis and ₹4,085.60 crore on market value basis. IndusInd Bank has certified that SAS Fininvest LLP is solvent up to ₹1,000 crore,’’ the regulator noted, asking the company to clarify the apparent financial inconsistencies arising from the disclosures.The company has been asked to submit a comprehensive debt-equity capitalisation plan identifying funding sources documentary evidence substantiating the availability of the requisite financial resources while demonstrating compliance with the Electricity Act, 2003, and applicable regulations.The regulator has also sought an affidavit from the company showing a detailed implementation plan to demonstrate that the phased development, operation and maintenance of the distribution network over a period of five-year will not result in ‘cherry-picking’ of consumers or geographical areas and shall ensure equitable and non-discriminatory access to electricity supply throughout the proposed area of supply. The commission has also sought an undertaking from the company to provide electricity connections and supply to all eligible consumers on a non-discriminatory basis and fulfil the Universal Service Obligation under Section 43 of the Electricity Act.‘Parallel distribution network may affect cross-subsidy’The regulator noted that introducing a parallel distribution licensee may have implications for the existing consumer mix and could affect DHBVN’s ability to sustain the prevailing cross-subsidy framework under which certain consumer categories contribute towards subsidising agricultural and rural consumers. Transmission company HVPN, the HERC said, is responsible for transmission system operation, scheduling, and maintenance of grid stability. “Accordingly, the potential impact of the proposed licence on the financial viability of the incumbent distribution licensee as well as on system operation and grid management warrants careful examination,’’ the commission said seeking impleading of DHBVN, UHBVN and HVPNL.Company overview· Eleven Power’s proposed licence area: Gurugram and Manesar municipal corporations, Sohna and Pataudi mandi municipal councils, Farrukh Nagar municipal committee in Gurugram revenue district, and Nuh, Punhana, Ferozepur Jhirka and Tauru municipal committees in Nuh revenue district.· Power procurement plan: 80% renewable energy and 20% thermal power.· Business model: Renewable energy focused distribution utility catering to energy needs of industrial, commercial, institutional, agricultural and urban consumers within Gurugram, Manesar and Nuh.· Promoter: Sunil Sachdeva, the co-founder of Medanta - The Medicity, a leading chain of multi-super specialty hospitals is the director of Eleven Power and chairman of Eleven Group.