TGERC Approves True-Up For FY25 And Revises Wheeling Tariffs For 2026-27 In Telangana

The Telangana Electricity Regulatory Commission (TGERC) issued a detailed order on March 28, 2026, focusing on the financial true-up for the 2024-25 fiscal year and approving revised electricity wheeling tariffs for 2026-27. The decision directly affects the state’s two main power distribution companies, Southern Power Distribution Company of Telangana Limited (TGSPDCL) and Northern Power Distribution Company of Telangana Limited (TGNPDCL).

The true-up process is used by the Commission to compare the actual expenses of these companies with the estimates that were approved earlier. For the financial year 2024-25, both utilities reported higher spending than expected. TGSPDCL submitted a net aggregate revenue requirement of ₹5,234.92 crore, which was ₹545.18 crore more than the previously approved amount. TGNPDCL also recorded an increase in costs, mainly due to higher employee expenses. These included revisions in dearness allowance (DA), medical reimbursements, and additional repair costs after flood damage affected parts of the power network.

The Commission carefully examined these claims before approving them. It carried out a prudence check to ensure that only valid and necessary expenses were considered. Some costs were disallowed, especially where there was a possibility of double recovery. For example, certain employee-related expenses that were already included under capital expenditure were not allowed again in operational costs.

Another key part of the order is the plan for the 2026-27 fiscal year. Both distribution companies have proposed large capital investments to upgrade the electricity network. One of the major proposals includes converting overhead power lines into underground cables, particularly in urban areas. This move is expected to improve safety, reduce outages, and strengthen the overall reliability of the system.

However, these infrastructure improvements will lead to higher wheeling charges. Wheeling charges are the fees paid by businesses and other users for using the electricity distribution network. According to the proposals, these charges could increase significantly, in some cases by more than 100% depending on the voltage level.

During public hearings held in January 2026, several stakeholders, including industry groups, raised concerns about the proposed increase. Many argued that such a sharp rise in wheeling charges could negatively affect small industries and commercial consumers. There were also demands for greater transparency in how costs are calculated and allocated.

In response, the Commission has directed both TGSPDCL and TGNPDCL to maintain clear and separate accounts for their wheeling and retail supply businesses. This step is expected to improve transparency and ensure that costs are fairly assigned without burdening consumers unnecessarily.

Overall, the order reflects an effort by the Commission to balance the need for modern and reliable power infrastructure with the importance of keeping electricity affordable. While the utilities are allowed to invest in system improvements, strict regulatory checks have been put in place to protect consumer interests and maintain financial discipline.