Opposition Grows Against Telangana Power Tariff Hike; BRS Urges State Govt to Absorb Costs

Hyderabad: Opposition to the proposed power tariff hike in Telangana is intensifying, with the Bharat Rashtra Samithi (BRS) and various stakeholders, including farmers, industrialists, and everyday consumers, voicing strong resistance during a public hearing organized by the Telangana State Electricity Regulatory Commission (TGERC) on Wednesday.

Sirikonda Madusudhana Chary, Leader of the Opposition in the Legislative Council and senior BRS leader, took a firm stand against the proposed tariff hike by the Telangana Southern Power Distribution Company Limited (TGSPDCL) and Telangana Northern Power Distribution Company Limited (TGNPDCL). Chary called on the state government to absorb the financial burden of the increase and provide compensation to the distribution companies (Discoms) in the form of subsidies.

During the hearing on the Aggregate Revenue Requirement (ARR) for the 2024-25 fiscal year, Chary argued that while the tariff hike may generate more revenue for the power companies, it would place a significant strain on the poor. He urged the Commission to reject the Discoms’ proposals and highlighted the previous BRS government’s efforts to transform Telangana from a power-deficit to a power-surplus state.

Chary praised the leadership of Chief Minister K. Chandrashekhar Rao (KCR) for investing heavily in the power sector, resulting in a dramatic increase in installed capacity from 7,000 MW in 2014 to over 24,000 MW by 2023. He emphasized that the BRS never viewed the power sector as a revenue stream but rather as a means to drive economic growth and development.

The Discoms had submitted that their total expenditure was around Rs. 40,000 crores, with an income of Rs. 34,000 crore and a Rs. 5,000 crore government subsidies. Chary questioned why the tariff was being increased to cover a shortfall of Rs. 1,000 crores, suggesting that the state could easily bridge the gap without passing the burden onto the public.

He warned that accepting the tariff hike could result in negative growth across sectors and the potential closure of small industries, urging the state government to take on the financial responsibility instead.