Telangana DISCOMs report ₹21,000 crore deficit in FY26 ARR filings

Hyderabad: Telangana’s north and south DISCOMs submitted their Annual Revenue Requirement (ARR) reports for 2025–26 to the Electricity Regulatory Commission (ERC) on Saturday night. Officials revealed that both utilities projected a combined revenue–expenditure gap of ₹21,000 crore for the coming financial year.

Under the Electricity Act, all state DISCOMs must file ARR reports with their respective ERCs by November 30. Telangana DISCOMs met this deadline and handed over sealed cover reports to comply with the ongoing panchayat election code.

Sources said the DISCOMs requested the government to bridge the projected shortfall in the 2025–26 state budget. The estimate includes procurement costs, transmission charges, and operational liabilities, leading to a significant funding gap.

Model code restricts disclosure of DISCOMs ARR deficit

Since the election code of conduct remains in effect, authorities will delay public disclosure of the ARR contents. Officials say this precaution ensures compliance and prevents influencing voters during the election period.

Once the model code lifts, the ERC plans to hold public hearings on the ARR filings. These hearings will allow citizens, industry groups, and consumer forums to comment on the proposed tariffs and deficit figures.

The ERC will then evaluate the submissions, consider stakeholder input, and decide whether to approve new tariffs or recommend subsidies. Any final decision will aim to balance DISCOM sustainability with consumer protection.