Haryana Electricity Regulatory Commission was established on 17^th August 1998 as an independent statutory body corporate as per the provision of the Haryana Electricity Reform Act, 1997. Haryana was the second State in India to initiate the process of Reform & Restructuring of the Power sector.

The Haryana Electricity Reform Act 1997 (Act No. 10 of 1998)(339 Kb) was passed by the Haryana State Legislative Assembly on 22^nd of July 1997. After receiving assent of the President of India on 20^th February 1998, this Act came into force on 14^th August 1998. The erstwhile Haryana State Electricity Board was unbundled into two corporate bodies namely Haryana Power Generation Corporation Limited (HPGCL) for the Generation of Power and Haryana Vidyut Prasaran Nigam Limited (HVPNL) for the Transmission & Distribution of power within the state of Haryana. Subsequently, the activity of distribution and retail supply of power was entrusted w.e.f. 1^st July 1999, to Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) for North circles and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) for South circles of Haryana. The Commission vide its order dated 4.11.2004(176 Kb) accepted the surrender of Distribution and Retail Supply license granted to HVPNL and granted separate licenses to UHBVNL & DHBVNL for Distribution and Retail Supply business in Haryana.

The Government of India notified The Electricity Act, 2003 with effect from 10^th June 2003. However, in Haryana, the provisions of the Electricity Act 2003 were deferred by six months from 10^th June 2003 vide notification No. 1/4/2003-IP dated 8.9.2003. Therefore, in Haryana, the provisions of the Electricity Act, 2003 as well as the provisions of the Haryana Electricity Reform Act, 1997, which are not inconsistent with the Electricity Act, 2003 are applicable.

The broad objectives of the Electricity Act, 2003, as incorporated in preamble of the Act, is to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

The Haryana Electricity Regulatory Commission is a three-member statutory body including the Chairperson with specialised supporting staff, designated to function as an autonomous authority responsible for regulation of the power sector in the state. The State Government on the recommendation of a Selection Committee, set up for the purpose in accordance with section 84 read with the section 85 of the Electricity Act 2003, appoints the Chairperson and Members of the Commission.