Telangana | Hike in per unit electricity by ₹0.30- ₹0.50 for at least 26 months; ERC approves true-up charges recovery

HYDERABAD

Consumers of electricity in Telangana, except those availing energy to run their agricultural pump-sets, are in for yet another shocker with the Telangana Electricity Regulatory Commission (TGERC) approving true-up charges of ₹5,420.23 crore to be collected from consumers other than farm power consumers, for energy consumed during 2022-23 and 2023-24.

What are true-up charges?

The true-up charges are the cost of difference for energy already consumed — the difference between cost of power supplied and the price recovered from consumers. Increase in the cost of supply is attributed to unexpected spike in fuel, power purchase and operational costs.

The total true-up charges approved stand at ₹7,635.22 crore including ₹2,214.99 crore for energy consumed by agricultural pump-sets, which is being provided free of cost. The Commission suggested the two Discoms to approach the State government for recovery of true-up charges pertaining to energy used for agricultural pump-sets.

₹0.30 per unit in November, ₹0.50 per unit in December

Accordingly, ₹0.30 (30 paise) per unit would be recovered from domestic, commercial, industrial and for lift irrigation schemes from the monthly bills to be issued in November and ₹0.50 (50 paise) per unit from December onwards. The recovery or burden of true-up charges would be for 29 months in case of consumers of the Southern Power Distribution Company of Telangana Ltd (TGSPDCL) and for 26 months from consumers of the Northern Power Distribution Company of Telangana Ltd (TGNPDCL).

What does it mean for domestic consumers?

A household consuming 200 units of energy a month for instance, would have to pay an additional charge of ₹60 in the bill to be issued in November ₹100 from December onwards, till March 2029 in case of consumers of TGSPDCL and till December 2028 in case of TGNPDCL consumers.

In its order passed on Monday (October 5, 2026), the TGERC stated that the total true-up charges of ₹7,635.22 crore include ₹5,186.29 crore of power purchase true-up for 2022-23 and ₹2,448.93 crore of revenue true-up charges for 2023-24. Of the total approved true-ups, the per unit recovery works out to ₹0.80 per unit for 2022-23 and ₹0.33 per unit for 2023-24.

Recovery charges to span 29 months for TGSPDCL consumers

The total recovery from consumers in TGSPDCL would be ₹4222.93 crore across 29 months and ₹1197.3 crore from consumers in TGNPDCL limits across 26 months from November 2026.

The approved energy sales for 2022-23 were 64,434.42 million units (MU) including 17,629.25 MU for agricultural pump-sets and for 2023-24 they were 74,442.36 MU including 25,154.04 MU for agricultural use. The Discoms have charged ₹798.87 crore more than cost of supply from consumers during 2024-25 and it would be adjusted in the annual revenue requirement of the retail supply business for 2026-27, the current year.