TERC Drafts Third Amendment To Electricity Supply Code Regulation, 2026 To Ensure Fair Billing And Consumer Protection In Telangana

The Telangana Electricity Regulatory Commission (TERC) has issued a draft notification for the “Third Amendment to the Electricity Supply Code Regulation, 2026,” aiming to update the long-standing rules governing electricity services in the state. The amendment seeks to revise the “Principal Regulation” (Regulation No. 5 of 2004), which was originally introduced by the Andhra Pradesh Electricity Regulatory Commission to regulate key aspects such as billing, recovery of charges, disconnection procedures, and prevention of meter tampering.

After the bifurcation of Andhra Pradesh, Telangana continued to follow the 2004 regulation along with later amendments made in 2006 and 2013. However, the Commission has now identified gaps, especially in the way interest is applied in billing-related cases, prompting the need for further refinement.

The current amendment has been largely driven by a proposal from Telangana State Southern Power Distribution Company Limited (TGSPDCL). The utility pointed out an imbalance in the system, where consumers are charged interest on pending bills when payments are made in installments, but the utility does not pay a similar rate of interest to consumers in cases of incorrect billing. Recognizing this inconsistency, the Commission has proposed changes to Clause 4.7.3 to bring fairness and uniformity.

Under the draft amendment, the process for handling billing complaints has been made more structured and consumer-friendly. If a consumer raises a complaint and the licensee finds an error in the bill, a revised bill must be issued. The new due date for payment of this corrected bill must be set at least seven days from the date the consumer receives it, giving adequate time for payment.

In cases where consumers have paid excess amounts due to incorrect billing, the surplus will be adjusted in future bills. Importantly, the amendment introduces a provision that requires the licensee to pay interest at the rate of 18 percent per annum on the excess amount held due to wrong billing. This step is expected to strengthen consumer protection and ensure accountability.

The Commission has clarified that the notification is currently in draft form and is open to feedback from stakeholders, including consumers and distribution companies. Based on the responses received, further revisions may be made before finalization.

The regulation, signed by Commission Secretary V. Ramchander on April 13, 2026, will apply across Telangana once it is published in the official gazette. The move is seen as an effort to improve transparency, protect consumer rights, and bring greater balance in the relationship between electricity providers and consumers.