The subsidy aims to bridge the revenue gap for power utilities while ensuring affordable electricity for domestic and agricultural consumers.
Published Apr 30, 2025 | 1:49 PM ⚊ Updated Apr 30, 2025 | 1:49 PM
TGERC spares power consumers from power tariff hike in 2025-26. (Representative image/ iStock)
Synopsis: The Telangana Electricity Regulatory Commission (TGERC) has announced no tariff hike for 2025–26, ensuring relief for all consumer categories. The state will provide ₹13,499.41 crore in subsidies to cover revenue gaps, mainly aiding domestic and agricultural users. Measures include EV charging support, fair standby charges for open access consumers, and lower grid support charges, promoting affordability and efficiency.
In what should come as a major relief to power consumers, the Telangana Electricity Regulatory Commission (TGERC) has announced that there will be no tariff increase for any consumer category in 2025-26.
The TGERC’s tariff order, issued by its chairman Justice Devaraju Nagarjun on Tuesday, 29 April, will come into fore from 1 May.
The Southern Power Distribution Company of Telangana Limited (TGSPDCL), Northern Power Distribution Company of Telangana Limited (TGNPDCL), and the Co-operative Electric Supply Society, Sircilla (CESS, Sircilla) filed their petitions earlier this year, seeking approval for their Aggregate Revenue Requirement (ARR) and tariff proposals.
After holding public hearings in Sircilla, Hanumakonda, and Hyderabad, the TGERC finalised the tariffs order, balancing consumer interests with the financial needs of the utilities.
The TGERC said that the tariff determination process was inclusive, with public hearings held across the state to gather objections and suggestions. The government’s commitment to quality power supply and financial assistance was reaffirmed during the Hyderabad hearing on 21 March, 2025, where a representative emphasized Telangana’s dedication to supporting its power utilities under Section 65 of the Electricity Act, 2003.
The TGERC has outlined significant subsidy commitments made by the Government of Telangana for 2025-26. The subsidy aims to bridge the revenue gap for power utilities while ensuring affordable electricity for domestic and agricultural consumers.
The TGERC has maintained existing tariff rates across all consumer categories, ensuring that households, businesses, and industries will face no additional burden.
For instanace, domestic consumers using up to 50 units per month of power will continue to pay just ₹1.95 per unit, while agricultural consumers (non-corporate farmers) will benefit from free electricity under the LT-V(A) category.
The Telangana Government has stepped up its financial support, committing ₹13,499.41 crore in subsidies for FY 2025-26, a 17.4 percent increase from the previous year.
It includes ₹11,602.60 crore for agricultural consumers and ₹1,896.81 crore for domestic users, ensuring that essential sectors remain supported.
The TGERC approved an Aggregate Revenue Requirement (ARR) of ₹58,628.09 crore for TGSPDCL and TGNPDCL, down from the ₹65,849.74 crore claimed.
For CESS, Sircilla, the approved Aggregate Revenue Requirement (ARR) is ₹581.38 crore against a claimed ₹654.65 crore.
The revenue gap of ₹13,122.04 crore for the DISCOMs and ₹377.37 crore for CESS will be fully covered by the state government’s subsidy, ensuring the utilities remain financially stable without passing costs to consumers.
Breakdown of the subsidies
The subsidies enable low or no-cost electricity for critical sectors. For instance, non-corporate farmers under LT-V(A) pay ₹0.00/unit, and domestic consumers benefit from low rates, particularly for consumption up to 100 units/month.
The TGERC has also raised the contracted load limit for LT-IX EV Charging Stations from 56 kW (75 HP) to 150 kW (201 HP). This enhancement, coupled with a low energy charge of ₹6.00 per unit, is expected to accelerate the adoption of electric vehicles across the state.
The TGERC has introduced measures to promote fairness and efficiency. For example, standby charges for open access consumers— those who buy power from provider other than the local distribution company (DISCOM)— will only apply to excess energy drawn without 24-hour advance notice, and green energy open access consumers — those who purchase green power directly from renewable energy generators or the open market, bypassing traditional distribution companies—are exempt if they notify in advance.
This apart, the unblocking of leading kVArh for kVAh billing will be implemented with a three-month notice period to ensure consumers can maintain optimal power factors.
The TGERC has approved grid support charges at ₹18.48/kW/month, lower than the ₹20.04/kW/month proposed by the DISCOMs, further easing the financial load on consumers utilizing grid support.
(Edited by Sumavarsha)
