Telangana Introduces New Electricity Billing Rules With 18% Interest On Consumer Refunds

The Telangana Electricity Regulatory Commission (TGERC) has introduced new rules to strengthen consumer protection and ensure fair treatment in electricity billing across the state. The Commission has officially issued the Electricity Supply Code Third Amendment Regulation, 2026, which was released on May 27, 2026. The amendment aims to address billing errors more effectively and provide better financial safeguards for consumers who are affected by incorrect electricity bills.

The regulation was issued under the authority of Commission Secretary V. Ramchander and brings important changes to the existing Electricity Supply Code. The code has been in place since 2004, when it was originally introduced by the then Andhra Pradesh Electricity Regulatory Commission. It governs several key aspects of electricity supply, including billing procedures, disconnection of services, and restoration of power connections.

After the formation of Telangana in 2014, the state adopted the existing electricity supply regulations along with amendments that had been introduced in 2006 and 2013. The latest amendment represents another significant update to the regulatory framework, focusing mainly on billing disputes and consumer refunds.

The move follows a proposal submitted by the Telangana State Southern Power Distribution Company Limited (TGSPDCL). According to the utility, there was a mismatch between the interest charged to consumers on delayed installment payments and the interest paid by distribution companies when consumers were overcharged due to billing mistakes. The utility requested the Commission to create a uniform approach to interest payments in such cases.

The Commission reviewed the proposal and invited public comments through a notice issued on April 13, 2026. After examining feedback received from stakeholders and electricity licensees, the Commission finalized the amendment.

One of the most important changes is the replacement of Clause 4.7.3 of the Principal Regulation. Under the revised provision, if a consumer files a complaint regarding an electricity bill and the distribution company finds that the bill contains an error, the company must immediately issue a corrected bill. The revised bill must also provide a fresh payment due date. The due date cannot be earlier than seven days from the date the consumer receives the corrected bill, giving consumers adequate time to make payment.

The amendment also provides stronger protection for consumers who have already paid an incorrect bill. In cases where excess amounts have been collected because of billing errors, the distribution company must refund the additional amount by adjusting it against future monthly bills.

To ensure accountability, the regulation now requires electricity distribution companies to pay interest at the rate of 18 percent per annum on the excess amount collected from consumers due to incorrect billing. This measure is intended to bring fairness and parity between consumers and utilities.

The Telangana Electricity Regulatory Commission (Electricity Supply Code) Third Amendment Regulation, 2026, will apply across the state and will come into force from the date of its publication in the Telangana Gazette.