The Telangana government has announced that there will be no increase in power tariffs for the financial year 2025-2026. During a public hearing conducted by the Telangana Electricity Regulation Commission (TSERC) on Friday, officials confirmed that the government will cover all power subsidy costs without raising electricity prices.
At the hearing, TSERC Chairman Justice D. Nagarjuna, TGSPDCL Chairman and Managing Director Musharraf Farooqui, and JMD C. Srinivasa Rao explained that the revenue gap is expected to reach ₹9,758 crore. This shortfall is mainly due to increased free power consumption in the farming and domestic sectors. However, the government has assured that it will cover this gap through subsidies, eliminating the need for a tariff hike.
Officials also highlighted the state’s growing electricity demand, which has reached 17,162 MW this year and is expected to rise further during peak summer. To manage this, the government has entered into power swap agreements with other companies across the country. These agreements have helped Telangana Southern Power Distribution Company Limited (TGSPDCL) save ₹1,614 crore.
Additionally, several measures have been introduced to strengthen the power distribution network. The government has invested ₹578.88 crore to improve the system, reduced distribution losses to 8.38%, and brought down the cost of power purchases to ₹5.76 per unit. The failure rate of power distribution transformers (DTRs) has also been reduced to 5.70%.
S. Priyadarshini, Deputy Secretary of the Energy Department, reassured the Commission that the state government is committed to providing financial support to Telangana’s power companies in the coming financial year. She emphasized that, as per the Electricity Act, 2003, and the approved tariff order, there will be no increase in electricity charges for any consumer category in 2025-26. The government will provide the necessary financial aid to maintain stable electricity prices.
