Published Oct 06, 2026 | 7:35 PM ⚊ Updated Oct 06, 2026 | 7:35 PM
The recovery relates to power purchase costs incurred in 2022-23 and the revenue gap for 2023-24.
Synopsis: Non-agricultural electricity consumers in Telangana will pay an additional charge from November as the TGERC has allowed the State’s two power distribution companies to recover ₹5,420.23 crore in past power costs. The levy will be 30 paise per unit in the first month and 50 paise thereafter, with recovery continuing for 29 months in the TGSPDCL area and 26 months in the TGNPDCL area.
Electricity prices in Telangana are set to be dearer starting November, with the Telangana Electricity Regulatory Commission (TGERC) allowing the State’s two power distribution companies to recover ₹5,420.23 crore in past power costs over the next two to two-and-a-half years.
In its order dated 5 October, the Commission fixed the recovery at 30 paise per unit in the first month and 50 paise per unit thereafter.
Of the ₹7,635.22 crore total amount, ₹2,214.99 crore relates to agricultural consumption. This amount will not be recovered from farmers, in keeping with the State’s free power policy. The Commission has directed the DISCOMs to approach the government for recovery of this portion.
The remaining ₹5,420.23 crore will be recovered from other consumers. Of this, ₹4,222.93 crore falls in the TGSPDCL area and ₹1,197.30 crore in the TGNPDCL area.
The levy will begin with bills issued from November and continue for 29 billing months in the Telangana Southern Power Distribution Company Limited (TGSPDCL) area and 26 months in the Telangana Northern Power Distribution Company Limited (TGNPDCL) area.
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The recovery relates to power purchase costs incurred in 2022-23 and the revenue gap for 2023-24. The TGERC has determined the total true-up amount at ₹7,635.22 crore – ₹5,186.29 crore towards power purchase costs for 2022-23 and ₹2,448.93 crore towards the revenue gap for 2023-24.
The TGERC had approved the true-up figures in an order passed in March, but had not decided how the amount would be recovered after the government sought a one-year deferral.
The DISCOMs subsequently wrote to the Commission in September seeking permission to begin recovery from November. They told the Commission that the government had consented to a phased recovery.
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The additional charge will not be calculated on a consumer’s current electricity use. The Commission has directed the DISCOMs to base it on past consumption.
For each connection, one-twelfth of the annual consumption in 2022-23 and 2023-24 will be treated as the monthly billing quantum. This quantum will be multiplied by the applicable recovery rate—30 paise per unit in the first month and 50 paise per unit from the second month—and the resulting amount will be added to the monthly electricity bill.
The DISCOMs have been directed to show the recovery as a separate line item on bills, specifying the financial year, consumption quantum and applicable rate.
Before issuing the first bills carrying the levy, they must publish notices in Telugu, English and Urdu newspapers. They must also submit quarterly statements to the Commission on the recoveries.
The amounts collected will first be appropriated towards the true-up for 2022-23, followed by that for 2023-24. The order states that no consumer can be charged more than the true-up amount attributable to their consumption during those two financial years.
(Edited by Dese Gowda)
