Telangana Government Rejects Discoms’ Proposal to Hike Electricity Tariffs
The Chief Minister indicated that to maintain the current power tariffs and prevent an increase, the government may need to provide subsidies to the Discoms. A detailed report on the financial losses incurred by the Discoms will be submitted to the ERC as part of the ARR report.
Hyderabad: The Telangana government has rejected the proposals from electricity distribution companies (Discoms) to increase power tariffs for the upcoming fiscal year. It has been clarified that there will be no hike in electricity rates until the financial year 2025-26.
The government has instructed Discoms to submit their Annual Revenue Requirement (ARR) report to the State Electricity Regulatory Authority Commission (ERC) for the year 2025-26 without proposing any tariff hike. Discom officials have stated that they will present the ARR report along with proposals to maintain the current electricity tariffs within a week to ensure stability in power rates for the upcoming fiscal year.
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Discoms’ Financial Losses
Northern and Southern Discoms reported losses of ₹6,299.29 crore for the fiscal year 2023-24, taking the total cumulative losses to ₹57,448 crore. This includes ₹39,692 crore for TSSPDCL (Telangana State Southern Power Distribution Company Limited) and ₹17,756 crore for TSNPDCL (Telangana State Northern Power Distribution Company Limited).
Review Meeting
During a review meeting held on Saturday, Chief Minister A. Revanth Reddy, along with Deputy Chief Minister Bhatti Vikramarka, was briefed by officials about Discoms’ financial losses. Officials emphasized that a tariff hike is essential to recover these losses. They suggested that while domestic electricity tariffs remain unchanged, an increase in tariffs for industrial, commercial, and other sectors could be considered.
However, both the Chief Minister and Deputy Chief Minister firmly refused any tariff hike under the current circumstances. The Chief Minister directed the officials to prepare proposals for maintaining the existing power tariffs and submit them to the ERC.
Government Support and Subsidies
The Chief Minister indicated that to maintain the current power tariffs and prevent an increase, the government may need to provide subsidies to the Discoms. A detailed report on the financial losses incurred by the Discoms will be submitted to the ERC as part of the ARR report.
