Big relief for power consumers: Telangana brings fixed charges for new electricity connections

Hyderabad: In a major reform in the issuance of new electricity connections, the Telangana Electricity Regulatory Commission (TGERC) has introduced a simplified fixed-charge system based on sanctioned load, doing away with distance-based levies for poles and power lines.

Implementation from February 5

The new guidelines will come into force from February 5, bringing significant relief to domestic consumers, farmers and commercial establishments.

The new guidelines, notified by TGERC, will be implemented across Telangana and will apply to all eligible Low Tension (LT) electricity connections.

Officials described the reform as a ‘consumer-friendly and farmer-centric’ step that aligns Telangana’s power distribution system with modern regulatory practices.

What are the new rules?

Under the revised norms, consumers seeking new electricity connections within a one-kilometre radius of an existing power line will be charged only based on load, irrespective of the distance from poles, transformers or distribution lines.

This replaces the earlier system where consumers were billed based on the number of poles, length of lines and infrastructure required to extend supply to their premises.

Domestic consumers to benefit

For residential connections, the revised charges are:

Up to 1 kW: Rs 500

Above 1 kW up to 5 kW: Charges capped at Rs 3,500

Officials said this would substantially reduce the financial burden on households, especially in semi-urban and rural areas where line extensions were earlier costly.

Apartments and commercial buildings

Apartments, multi-storied buildings and commercial complexes will also be covered under the fixed-charge system. In such cases, charges will be calculated on the combined sanctioned load, bringing uniformity and predictability to the connection process.

Major relief for farmers

Farmers have emerged as one of the biggest beneficiaries of the new policy. Under the revised guidelines:

- Agricultural connections will attract a flat charge of Rs 1,000 per kW

- No additional Operation and Maintenance Charges (ORC) will be collected

Earlier, if an agricultural connection required more than three electricity poles, farmers often had to pay up to Rs 45,000 or more as additional charges.

Why the change was needed

Under the earlier system, electricity officials prepared detailed cost estimates based on distance from the nearest power source. Consumers had to bear the entire cost of poles, conductors and related infrastructure, often running into several thousands of rupees.

This estimation-based approach was widely criticised for being time-consuming, opaque and financially burdensome, particularly for farmers and middle-class households.

With the new framework, the government has formally ended the distance-based estimation system, prioritising sanctioned load over physical distance.

Officials said the move would speed up the release of new connections, ensure transparency in billing, eliminate scope for arbitrary estimations and reduce disputes between consumers and utility staff.