Hyderabad: The Telangana government has decided not to increase electricity tariffs for the upcoming fiscal year, rejecting proposals from the state’s power distribution companies (Discoms). The existing power rates will remain unchanged for the current financial year.
The Telangana State Southern Power Distribution Company Ltd (TSSPDCL) and Telangana State Northern Power Distribution Company Ltd (TSNPDCL) had proposed a tariff hike across almost all consumer categories for 2024-25. Their Aggregate Revenue Requirement (ARR) report for the fiscal year, submitted to the Telangana Electricity Regulatory Commission (TGERC), estimated total expenses at Rs.57,857 crore, while expected revenue stood at Rs.44,835 crore, leaving a shortfall of Rs.13,022 crore. They sought this amount from the government as reimbursement for subsidies provided to agricultural and other sectors.
Govt stands firm against tariff hike
During a review meeting on Saturday, Chief Minister A. Revanth Reddy and Deputy Chief Minister Bhatti Vikramarka were briefed on Discoms’ financial losses. Officials suggested raising electricity rates—particularly for industrial and commercial consumers—and increasing fixed charges for domestic consumers using more than 300 units per month. The proposed increase would raise fixed charges from Rs.10 per kilowatt (kW) to Rs.50 per kW, significantly affecting high-consumption households.
However, the Chief Minister firmly rejected the proposal, directing Discoms to maintain the current rates and submit alternative financial plans to the TGERC. The government is also considering subsidizing Discoms to help cover the revenue gap and avoid burdening consumers.
Discoms face heavy losses
Telangana’s Discoms reported a combined loss of Rs.6,299.29 crore for 2023-24, bringing their total cumulative losses to Rs.57,448 crore, Rs.39,692 crore for TSSPDCL and Rs.17,756 crore for TSNPDCL.
While the ARR and tariff proposals are typically submitted in November or December, the new government, which took office in December 2023, sought more time for assessment. Discom officials had hoped to implement the new tariff from November 2024, pending approval from the ERC. However, with the government’s firm stance, power tariffs will remain unchanged, ensuring stability for consumers.
