The Telangana Electricity Regulatory Commission has issued a key order that will shape how the State Load Despatch Centre operates financially and technically in the coming years. The decision focuses on reviewing past expenses and setting new charges for the future, ensuring the smooth functioning of the power grid in Telangana.
The order includes the final “true-up” for the financial year 2024–25. This process checks the difference between what was earlier approved and what was actually spent and earned. According to the review, the SLDC, managed by TGTRANSCO, faced a net deficit of ₹7.59 crore. The gap mainly occurred because expenses increased beyond expectations while revenues were lower than planned. Actual spending rose by ₹6.96 crore compared to the approved budget, and revenue collection was short by ₹0.63 crore.
One of the important issues during the review was related to the Return on Equity (RoE). Since TGTRANSCO delayed filing its Multi-Year Tariff petition, the Commission had earlier imposed a 3.5% penalty on the RoE. The company requested that this penalty be removed, but the Commission decided to keep its stance after examining the matter closely. Finally, the RoE was approved at ₹0.34 crore for the year.
Looking ahead, the Commission has set the financial framework for the year 2026–27. It approved an Aggregate Revenue Requirement (ARR) of around ₹85.06 crore. This amount represents the total funds required for the SLDC to run its operations efficiently. It covers employee costs, maintenance expenses, and interest payments, among other things. The ARR is higher than in previous years, mainly because it also includes the deficit of ₹7.59 crore carried forward from the earlier true-up exercise.
Based on this ARR, the Commission has fixed new SLDC charges for 2026–27. The charges have been set at ₹3,010.51 per MW per month. These are calculated by dividing the total revenue requirement by the expected contracted generation capacity of the state, which is estimated at 23,550.63 MW. These charges will be recovered from users of the grid to ensure that the SLDC has sufficient funds to manage operations.
During the process, the Commission also conducted public hearings to gather feedback from stakeholders. Several concerns were raised, particularly about a proposed capital expenditure of ₹43 crore planned within a single year. Stakeholders questioned whether such a large investment was necessary and asked for more clarity on ongoing and future projects. Transparency and proper justification of expenses were key demands during these discussions.
The Commission considered these concerns while making its final decision. It aimed to strike a balance between addressing stakeholder expectations and ensuring that the SLDC has enough resources to maintain grid stability and reliability. The SLDC plays a crucial role in managing the power system, including balancing supply and demand and ensuring uninterrupted electricity flow.
Through this order, the Commission has taken a structured approach to strengthen both the financial health and operational efficiency of the SLDC. The decision reflects an effort to maintain accountability while preparing the state’s power system to meet future demands.
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