TGERC approves Rs 13,499.41 Cr revenue gap of CESS, Discoms; consumers saved

The government has committed to covering the full gap. It has also decided not to pass it on to customers

By Newsmeter Network
Published on : 30 April 2025 9:16 AM IST

TGERC approves Rs 13,499.41 Cr revenue gap of CESS, Discoms; consumers saved

TGERC approves Rs 13,499.41 Cr revenue gap of CESS, Discoms; consumers saved

Hyderabad: Telangana Electricity Regulatory Commission (TGERC) has approved Rs 13,499.41 crore revenue gap of the Cooperative Electric Supply Society (CESS) Sircilla and the Southern and Northern Power Distribution Companies of Telangana (Discoms).

This is on account of revenue at the approved tariff, cross-subsidy, and additional surcharge.

The government has committed to covering the full gap. It has also decided not to pass it on to customers.

Justice Devaraju Nagarjun, chairman of the TGERC, issued the retail supply rate order for 2025-26 on Tuesday, which will be effective May 1 for consumers of the two Discoms and CESS.

He also disclosed the aggregate revenue requirement (ARR) and cross subsidy surcharge (CSS) that were approved by the Commission for the fiscal year.

The two Discoms claimed Rs 65,849.74 crore, however, the Commission granted the ARR of Southern Power Distribution Company of Telangana Ltd (TGSPDCL) at Rs 41,128,21 crore and TGNPDCL at Rs 17,499.87 crore, for a total of Rs 58,628.09 crore.

Similarly, the Commission accepted CESS's ARR of ₹581.38 crore as opposed to the Rs 654.65 crore it had requested.The revenue gap permitted for TGSPDCL was Rs 4,980.34 crore, while for TGNPDCL it was Rs 8,141.70 crore, according to the TGERC Chairman. Likewise, ₹377.37 crore was approved for CESS.

He mentioned that the State government's promised subsidy for 2025–2026 was Rs 13,499.41 crore, 17.4 per cent more than the previous year's Rs 11,499.52 crore. The government has allocated ₹11,602.60 crore for free power to agricultural pumpsets and Rs 1,896.81 crore for household consumers, namely for the free power supply scheme that provides 200 units each month.

The Commission has previously said that there would be no tariff revisions for any consumer category. Sircilla, Hanamkonda, and Hyderabad hosted public hearings on the tariff and ARR proposals on March 18, 19, and 21, respectively. The Commission has enhanced the contracted load limit for the electric vehicle (EV) charging stations (LT-IX) from the existing 56 kilowatt/75 HP to 150 kW/201 HP. Similarly, the grid support charges are approved at Rs 18.48 per kilowatt per month.

Standby charges for open access consumers would be 10 per cent over the appropriate tariff, but only for energy drawn in excess of contracted maximum usage. However, if the open access consumer provides the licensee (Discom) with 24 hours' notice, the standby charges will be waived. The standby charges would also be waived if open-access consumers used green energy with at least a day's notice.

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