Hyderabad: The Telangana government has approved the creation of a third electricity distribution company (DISCOM) to improve power delivery and ease the load on existing utilities. The new entity will focus on supplying electricity to key consumer categories that receive subsidies, including agriculture.
At present, TGSPDCL serves 15 districts, while TGNPDCL covers 18. With demand increasing and subsidy costs rising, officials said the third DISCOM will help balance supply and improve efficiency in service delivery.
The third power DISCOM aimed at easing the stress on existing utilities
The state’s existing DISCOMs have been under growing financial stress. The main issue is the wide gap between the Average Billing Rate (ABR) and the Average Cost of Service (ACoS). This mismatch has limited their ability to raise funds and carry out upgrades under central schemes like the Revamped Distribution Sector Scheme (RDSS).
Officials believe the new DISCOM will ensure better financial planning and allow targeted subsidy distribution. They said it would also improve service quality in rural and priority sectors.
Principal Secretary Navin Mittal issued the government order. It outlines the objectives and operational framework for the third DISCOM.