HYDERABAD: Electricity charges in Telangana will remain unchanged for the 2025–26 financial year, according to a tariff order issued by the Telangana State Electricity Regulatory Commission (ERC). The commission has directed DISCOMs to continue collecting power bills under the existing structure without any hike.
ERC Chairman Justice D. Nagarjun issued the new tariff order on Tuesday at the commission’s office, announcing that it would come into effect from Thursday, May 1.
The commission found that the combined financial deficit of the state’s two DISCOMs and the Southern Electricity Supply Company (CESS) in Rajanna Sircilla district amounts to ₹13,499.41 crore. During hearings on petitions submitted by the DISCOMs last November, they projected a total deficit of ₹20,151 crore. However, the ERC determined that the actual shortfall is ₹6,652 crore less than claimed. Justice Nagarjun stated that DISCOMs had overestimated the deficit based on assumptions of higher agricultural power consumption, which the commission found to be inflated.
He further explained that since the state government has formally committed to releasing ₹13,499.41 crore as subsidy to cover the entire deficit, the ERC found no justification for approving a tariff hike.
Key highlights of the tariff order:
– The government will provide ₹1,896.81 crore towards subsidies for domestic power users and ₹11,602.60 crore for supplying free electricity to the agricultural sector.
– The total subsidy amount is ₹1,999.89 crore (17.4%) higher than the ₹11,499.52 crore provided in the previous financial year (2024–25).
– Under the Gruhajyoti scheme, ₹1,922 crore will be allocated this year to supply 200 units of free electricity per month to 50,52,167 households.
– For electric vehicle (EV) charging stations, the contract load limit has been raised from 56 kilowatts to 150 kilowatts.
– Grid support charges will increase from ₹18.48 to ₹20.04 per kilowatt per month starting May 1.
– Open access consumers drawing power beyond their contracted demand without giving 24 hours’ notice will be levied an additional 10% on charges.
Justice Nagarjun also stressed the importance of increasing public awareness around electrical safety, especially among youth, who account for a significant number of casualties in electricity-related accidents.
He noted that construction of the Yadadri thermal power plant is expected to be completed by January 2026. Until then, the full 4,000 megawatts of power will not be available. While solar power generation during the day may create an impression of surplus energy, the demand for thermal power during night hours requires additional procurement from external sources.
If the current trend continues, the state could face a power deficit by 2030, he warned. To avoid such a scenario, he recommended signing power purchase agreements for new electricity generation projects.