Hyderabad: Telangana’s power distribution companies (DISCOMs) have filed petitions with the Electricity Regulatory Commission (ERC) seeking approval to collect ₹9,331.09 crore as electricity surcharge from consumers under the “true-up” mechanism.
The DISCOMs cited excess spending on power purchases beyond ERC-approved limits. Southern DISCOM (TSSPDCL) claimed an overrun of ₹4,103.61 crore for 2022–23, while Northern DISCOM (TSNPDCL) reported ₹2,779 crore in excess costs. For 2023–24, TSSPDCL requested recovery of ₹2,335.45 crore, and TSNPDCL sought ₹113.48 crore.
In total, the DISCOMs requested approval to recover these charges from users to offset power procurement and operational expenses, arguing that they exceeded estimates due to factors beyond their control.
ERC to hold hearing on electricity surcharge Telangana petitions
At the same time, both DISCOMs filed “true-down” petitions acknowledging surplus revenue of ₹798.87 crore in 2024–25. They proposed returning this to consumers: ₹195.90 crore by the Southern DISCOM and ₹113.48 crore by the Northern DISCOM.
The ERC issued a notification inviting objections and suggestions from the public until January 31. A public hearing is scheduled for February 27, after which a final decision will be made.
If ERC clears the petitions as filed, Telangana consumers could face an added burden of ₹8,532.22 crore. Under regulatory norms, the ERC permits recovery through true-up only when cost increases result from uncontrollable factors.
Although DISCOMs submitted the petitions to ERC, the commission is expected to follow the state government’s final decision. In 2023, ahead of the Assembly elections, the then government blocked a ₹12,718 crore recovery plan and instead agreed to pay the amount in equal yearly instalments over five years. However, it did not release any funds before leaving office.