A new controversy is brewing in Telangana as the state’s power distribution companies (DISCOMs) have requested an increase in electricity charges. The DISCOMs have filed an Annual Revenue Requirement (ARR) proposal asking the Telangana State Electricity Regulatory Commission (TSERC) to raise fixed charges for domestic consumers who use more than 300 units per month. They have also proposed higher charges for High Tension (HT) power consumers, which mostly include industries.
If the proposal is approved, people who use over 300 units of electricity will face higher bills. However, 80% of domestic consumers, who use up to 299 units per month, will not be affected by the increase in fixed charges. The DISCOMs estimate that these changes could help them generate an additional Rs 1,200 crore in revenue to cover their financial deficit for the year 2024-25.
The ruling Bharat Rashtra Samithi (BRS) party has expressed opposition to this move. They argue that during their ten years in power, they have only raised electricity tariffs once, and they are now preparing to challenge the proposed hike.
The Southern Power Distribution Company of Telangana Limited (TGSPDCL) and the Northern Power Distribution Company of Telangana Limited (TGNPDCL) have reported a significant deficit of Rs 14,222 crore between their income and expenses this year. They have asked the Telangana government to provide Rs 13,022 crore through the state budget to cover the costs of free electricity for agricultural purposes and 200 units of free power for low-income households. The proposed tariff hike is aimed at covering the remaining Rs 1,200 crore shortfall.
Officials from the Energy Department explained that currently, a fixed charge of Rs 10 per kilowatt is applied when a household’s electricity usage exceeds 300 units per month. The DISCOMs are now requesting permission to raise this charge to Rs 50 per kilowatt. They emphasized that since 80% of households consume less than 300 units, most people in the state will not experience any financial burden from this increase.
For industries, the current rates vary based on connection capacity. For example, industries with an 11 KV connection are charged Rs 7.65 per unit, while those with a 33 KV connection pay Rs 7.15, and those with a 132 KV connection are charged Rs 6.65 per unit. The DISCOMs are requesting a uniform rate of Rs 7.65 per unit across all industries, regardless of the connection type. Additionally, they have proposed increasing the fixed charge for industries from Rs 475 per kilowatt to Rs 500.
