Discom rules out tariff hike despite Rs 9,583 cr revenue gap

Hyderabad: Telangana Southern Power Distribution Company Limited (TGSPDCL) has proposed no hike in electricity tariffs for the financial year 2026-27, even as it projected an annual revenue requirement (ARR) of ₹50,242 crore before the state regulator.TGSPDCL chairman and managing director Jitesh V Patil presented the ARR during a public hearing conducted by the Telangana Electricity Regulatory Commission (TGERC), chaired by Justice Devaraju Nagarjun.
While outlining the revenue projections, the CMD said the total amount payable to power generation companies in 2026-27 is estimated at ₹38,492 crore. However, the discom expects to generate about ₹40,659 crore from the existing tariff structure, leaving a revenue deficit of ₹9,583 crore. Official sources said the state govt is opposed to any tariff hike, particularly in view of the upcoming urban local body elections and the Greater Hyderabad Municipal Corporation polls. The govt has indicated its willingness to bridge the deficit by extending financial support to the discom.The CMD said the discom has sought govt support to address the revenue gap. At present, TGSPDCL serves around 1.20 crore consumers, with nearly 12 lakh new consumers added in the last financial year. "Though the connected load increased to a record level, the discoms is meeting the demand. The power consumption until Dec 2025 was 39,556 million units. Of this, domestic consumption is 23%, industrial 31%, agricultural 21%, commercial 16%, and other categories 9%. Statewide, a peak electricity demand of 18,139 MW was recorded on March 3, and it was 11,129 MW in TGSPDCL limits covering GHMC, erstwhile Nalgonda, Mahbubnagar, Rangareddy, and Medak districts. The demand is estimated to reach 20,975 MW in the upcoming fiscal year," Jitesh said. He added that power purchase costs have reduced over the past year from ₹6.35 per unit to ₹5.54 per unit, while distribution losses have also declined from 8.30% to 8.04%. Gruha Jyoti schemeReferring to the govt's Gruha Jyoti scheme, under which households receive free electricity up to 200 units, the CMD said about 30% of residential consumers under TGSPDCL are benefiting from the initiative. "The Gruha Jyoti scheme has reduced electricity theft. It is estimated that 71,916 million units of electricity will be needed in the 2026-27 fiscal year," he said. Get the latest lifestyle updates on Times of India, along with Women's day wishes, messages and quotes !