Telangana: Increase in Electricity Rates Likely?

Hyderabad: The continuous rise in commodity prices is causing difficulties for the general public. Prices of salt, lentils, and oil have surged unexpectedly. Now, electricity consumers in Telangana may face another setback, as an increase in electricity rates is anticipated soon.

The state’s electricity distribution companies (DISCOMs) have requested the government to revise electricity rates. They have submitted an annual revenue requirement report for the fiscal year 2024-25 to the Telangana Electricity Regulatory Commission (ERC).

Both Southern and Northern DISCOMs have revealed a deficit between their revenues and expenditures this year. The total estimated deficit is around 14,222 crores, of which 13,022 crores is sought from the state government through the annual budget. The remaining 1,200 crores is intended to be covered through rate adjustments.

However, it is expected that this burden will not significantly affect residential consumers. Currently, a fixed charge of 10 rupee per kilowatt is applied for electricity usage exceeding 300 units, which is proposed to be increased to 40 rupee.

Under the ” gruha jyothi” scheme, the government provides free electricity for up to 200 units, and there will be no increase in charges for households using up to 299 units. In Telangana, there are over 1.3 crore domestic electricity connections, with only 20% using more than 300 units, meaning that only they will be affected by the increased charges.

DISCOMs state that 80% of consumers will not bear the burden of the increased rates. Additionally, public hearings are required regarding DISCOMs’ proposals in the state, after which the ERC will make a decision. This entire process may take up to three months to complete.