TGERC Approves Revised ARR And Tariffs For TGTRANSCO, Orders Consumer Surplus Adjustment In Telangana

The Telangana Electricity Regulatory Commission (TGERC) issued an important order on March 28, 2026, setting out the financial and operational framework for Transmission Corporation of Telangana Limited (TGTRANSCO). The order covers the true-up for the financial year 2024-25 and approves the revised Aggregate Revenue Requirement (ARR) along with transmission tariffs for 2026-27.

The decision follows a petition filed by TGTRANSCO in November 2025 under the Multi-Year Tariff regulations. A key part of the process was the true-up exercise for FY 2024-25, where actual expenses are compared with earlier approved estimates. TGTRANSCO reported a surplus of about ₹1,390.76 crore. The utility suggested that this surplus be returned to consumers over two years. However, several stakeholders pushed for a faster refund within one year to give quicker financial relief to electricity users.

Another major issue discussed in the order was related to depreciation. TGTRANSCO pointed out a gap between the depreciation allowed by the Commission and its actual loan repayment needs. The utility reported a shortage of more than ₹920 crore for FY 2024-25. To manage this, it requested approval for Advance Against Depreciation (AAD), which helps utilities recover higher amounts in the early years to meet debt obligations. There was also a disagreement on the useful life of transmission assets. TGTRANSCO supported a 35-year life for transmission lines, while some schedules mention 25 years, leading to differences in calculations.

The Commission also reviewed delays in filing the MYT petition. TGTRANSCO submitted the filing late, partly due to the general elections. Despite this explanation, the Commission imposed a penalty by reducing the Return on Equity (RoE) by 3.5%. As a result, the approved RoE was fixed at 10.50% instead of the standard 14%, causing a financial impact of around ₹143.97 crore for the utility.

For FY 2026-27, TGTRANSCO has planned a capital expenditure of ₹4,432.61 crore to strengthen the transmission network. The projects include setting up new substations and upgrading infrastructure to improve reliability and support future power generation. Key works include evacuation systems for new thermal projects and improvements in existing substations.

Finally, the Commission approved a revised ARR of ₹2,423.86 crore for FY 2026-27, which is lower than the utility’s initial request. The decision aims to balance infrastructure development needs with affordable electricity transmission charges for consumers across the state.