Telangana Power Discom Proposes No Tariff Hike for FY 2026-27 Despite Revenue Deficit
In a significant move, the Telangana Southern Power Distribution Company Limited (TGSPDCL) has proposed no increase in electricity tariffs for the financial year 2026-27. This decision comes even as the discom projected an annual revenue requirement (ARR) of ₹50,242 crore before the state regulator.
Public Hearing and Revenue Projections
TGSPDCL chairman and managing director Jitesh V Patil presented the ARR during a public hearing conducted by the Telangana Electricity Regulatory Commission (TGERC), chaired by Justice Devaraju Nagarjun. While outlining the revenue projections, Patil stated that the total amount payable to power generation companies in 2026-27 is estimated at ₹38,492 crore.
However, the discom expects to generate approximately ₹40,659 crore from the existing tariff structure, leaving a substantial revenue deficit of ₹9,583 crore. Official sources indicated that the state government is opposed to any tariff hike, particularly in view of the upcoming urban local body elections and the Greater Hyderabad Municipal Corporation polls. The government has expressed its willingness to bridge this deficit by extending financial support to the discom.
Consumer Base and Power Consumption
Patil highlighted that TGSPDCL currently serves around 1.20 crore consumers, with nearly 12 lakh new consumers added in the last financial year. He noted, "Though the connected load increased to a record level, the discom is meeting the demand." The power consumption until December 2025 was 39,556 million units, with the following breakdown:
- Domestic consumption: 23%
- Industrial consumption: 31%
- Agricultural consumption: 21%
- Commercial consumption: 16%
- Other categories: 9%
Statewide, a peak electricity demand of 18,139 MW was recorded on March 3, with TGSPDCL limits covering GHMC, erstwhile Nalgonda, Mahbubnagar, Rangareddy, and Medak districts experiencing 11,129 MW. Patil projected that the demand is estimated to reach 20,975 MW in the upcoming fiscal year.
Cost Reductions and Gruha Jyoti Scheme
In positive developments, Patil added that power purchase costs have reduced over the past year from ₹6.35 per unit to ₹5.54 per unit, while distribution losses have also declined from 8.30% to 8.04%.
Referring to the government's Gruha Jyoti scheme, under which households receive free electricity up to 200 units, the CMD said about 30% of residential consumers under TGSPDCL are benefiting from this initiative. "The Gruha Jyoti scheme has reduced electricity theft," he noted, estimating that 71,916 million units of electricity will be needed in the 2026-27 fiscal year.
Government Support and Future Outlook
The CMD emphasized that the discom has sought government support to address the revenue gap. With the state government indicating its readiness to provide financial assistance, the no-hike proposal aims to balance consumer interests with operational sustainability amidst rising demand and electoral considerations.
