TGERC Approves TGNPDCL Takeover Of CESS Power Distribution Operations In Telangana

The Telangana Electricity Regulatory Commission (TGERC) has issued a major order allowing the Northern Power Distribution Company of Telangana Limited (TGNPDCL) to officially take over the power distribution operations of the Cooperative Electric Supply Society Limited (CESS) in Sircilla of Rajanna Sircilla district. The order, issued on May 19, 2026, marks the end of a 56-year-old cooperative power distribution system and brings the area under the direct management of the state-run distribution company.

The issue arose after the statutory exemption granted to CESS expired on March 31, 2026. According to the Electricity Act, 2003, a cooperative society can continue operating without a regular distribution license only if the state government recommends an extension. However, the Telangana Government did not support the continuation of the exemption for CESS, creating uncertainty over electricity distribution services in the region.

To avoid disruption in power supply to consumers, the Commission passed an interim order on March 31, 2026, directing TGNPDCL to temporarily take over the distribution and retail supply services from April 1, 2026. At the same time, the Telangana Government also issued directions to merge the distribution activities of CESS with TGNPDCL.

The state government’s decision was reportedly influenced by several allegations against the CESS management, including administrative inefficiencies, financial irregularities, lack of transparency in procurement and working estimates, and political interference. Following these developments, TGNPDCL approached the Commission seeking an official amendment to its existing distribution license to include all consumers previously served by CESS.

The proposal generated strong public reaction, with 1,211 stakeholders submitting feedback and objections before the Commission. Many supporters, including local farmers, backed the merger and claimed that services had improved after TGNPDCL assumed temporary control. They highlighted better maintenance work, improved administration, and more transparent operations.

However, several stakeholders opposed the move and described it as an unfair takeover of a long-standing cooperative institution. The objectors argued that the transition ignored the interests and democratic rights of around 3.41 lakh CESS members. They also demanded a financial white paper, forensic audit, and payment of pending government dues of around ₹787 crore before any merger process was completed.

After reviewing all submissions, the Commission rejected the objections and clarified that its responsibility was limited to ensuring uninterrupted and reliable electricity supply under the Electricity Act. TGERC approved the amendment to TGNPDCL’s distribution license with retrospective effect from April 1, 2026. The order also directed TGNPDCL to maintain the same level of service for former CESS consumers and continue existing retail tariffs during the 2026–27 financial year.