TERC Upholds Existing Time of Day Tariffs, Defers Solar-Hour Rebate Implementation In Telangana

The Telangana Electricity Regulatory Commission (TERC) has issued an important order on Time of Day (ToD) electricity tariffs for industrial consumers, following a petition filed by M/s. Radha Smelters Private Limited against the state’s power distribution companies, TGSPDCL and TGNPDCL.

The matter relates to an earlier decision by the Commission that allowed the distribution companies to withdraw a night-time rebate of ₹1.50 per unit provided to High-Tension (HT) industrial consumers. Aggrieved by this withdrawal, Radha Smelters approached the Appellate Tribunal for Electricity (APTEL). In February 2026, APTEL directed the Commission to review the case again, particularly in light of the Electricity (Rights of Consumers) Amendment Rules, 2023.

During the proceedings, the industrial consumer argued that the Commission was not complying with the 2023 Amendment Rules. These rules require that tariffs during solar hours should be at least 20% lower than normal tariffs to promote efficient energy use. The petitioner pointed out that while the night-time rebate had been removed, peak-hour surcharges were still being applied. This, according to them, created an imbalance in the tariff structure and went against the intent of the central rules.

The respondent also highlighted that several states, including Maharashtra and Gujarat, had already implemented provisions aligned with the 2023 Amendment Rules. They requested the Commission to immediately introduce the 20% rebate during solar hours and correct the tariff structure.

However, the Commission decided to maintain the existing tariff framework. It refused to restore the night-time rebate and also did not implement the 20% solar-hour discount at this stage. The Commission clarified that the 2023 Amendment Rules specifically refer to solar hours and peak hours, and do not mandate a night-time rebate. Therefore, the earlier decision to withdraw the night-time incentive was found to be valid and within its authority.

The Commission also explained that introducing a 20% rebate during solar hours would require a complete restructuring of the tariff system. Such a move would affect all categories of consumers and could not be decided in a limited case involving only one industrial consumer. It stated that any major change to the ToD tariff structure must follow a proper legal process, including public consultation and stakeholder participation.

Further, the Commission emphasized that its responsibility is to ensure a balance between electricity demand and supply, while also considering cost factors such as power procurement and load patterns. It noted that tariff decisions must be based on detailed analysis and reliable data.

While acknowledging that the 2023 Amendment Rules are binding, the Commission stated that their implementation would be taken up in future general tariff proceedings. Until then, the current tariff structure will continue.

The order was issued by the Commission under the chairmanship of Dr. Justice Devaraju Nagarjun, along with its technical and finance members.