The Telangana Electricity Regulatory Commission (TGERC) has closed Petition O.P. No. 59 of 2018, ending a long-running regulatory proceeding involving electricity payment disputes between Telangana and Andhra Pradesh following the bifurcation of the erstwhile state. The Commission passed the order on August 28, 2026.
The petition was filed by Telangana’s Northern and Southern Power Distribution Companies (TGDISCOMs) against Andhra Pradesh power sector entities, including APGENCO, APTRANSCO, APEPDCL and APSPDCL.
The dispute primarily arose from payment demands raised by APGENCO for power supplied to Telangana after the 2014 state reorganization. Telangana DISCOMs had challenged APGENCO’s claims and also sought protection against possible insolvency proceedings before the National Company Law Tribunal (NCLT).
Telangana argued that the claims made by APGENCO could not be considered independently because several financial matters between the two states remained unsettled. These included investments in power projects, liabilities arising from the demerger, pension bonds, inter-corporate deposits and unallocated hydel power shares.
Based on its calculations, Telangana claimed that mutual adjustments would result in a net receivable of Rs. 2,137.57 crore. APGENCO, however, maintained that Telangana owed Rs. 3,441.78 crore in principal dues for electricity supplied after bifurcation.
During the proceedings, TGERC had issued an interim order on December 29, 2018, restraining APGENCO from taking coercive recovery action against the Telangana DISCOMs.
The circumstances later changed significantly. APGENCO withdrew its NCLT proceedings on September 3, 2020, removing the immediate insolvency-related concern that had prompted Telangana to approach the Commission.
The broader financial dispute subsequently moved into the judicial system. On August 29, 2022, the Union Ministry of Power directed Telangana to pay Rs. 6,756.92 crore, including principal dues and late payment surcharge. Telangana challenged the direction before the High Court for the State of Telangana.
On October 19, 2023, the High Court set aside the Union Ministry’s direction. APGENCO and the Andhra Pradesh government then challenged the High Court judgment before the Supreme Court of India through Special Leave Petitions (SLPs) Nos. 26879 and 26880 of 2023.
Against this background, the TGERC Bench, headed by Chairman Dr. Justice Devaraju Nagarjun, observed that the immediate grievance underlying the 2018 petition no longer existed because the NCLT proceedings had already been withdrawn.
The Commission also noted that the wider disputes concerning power dues, financial claims and demerger-related issues are already being considered by constitutional courts, including the Telangana High Court and the Supreme Court.
TGERC therefore concluded that there was no operational purpose in keeping O.P. No. 59 of 2018 pending and formally closed the petition.
With the closure, the interim restraining order issued in 2018 also stood vacated. However, the Commission clarified that its decision does not amount to a final determination on the merits of the financial claims, jurisdictional issues or reconciliation statements.
The Telangana DISCOMs retain the right to approach TGERC again if future developments create a need for regulatory intervention. The Commission also made no order regarding costs.
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