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) was passed by the Haryana State Legislative Assembly on 22^nd of July 1997. It came into force on 14^th August 1998 after receiving assent of the President of India on 20^th February 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 Haryana Electricity Regulatory Commission is a three-member statutory body including the Chairperson with 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.