Telangana electricity consumers outside the agricultural sector will face an additional recovery charge from bills issued in November 2026 after the Telangana Electricity Regulatory Commission finalised a mechanism to collect Rs. 5,420.23 crore through the state’s two distribution companies.
The Telangana Electricity Regulatory Commission, or TGERC, ordered that the amount be recovered at 30 paise per unit in the first month and 50 paise per unit in subsequent months. The recovery will be carried out by TGSPDCL and TGNPDCL, the two state-owned power distribution companies.
The charges form part of a combined True-Up amount of Rs. 7,635.22 crore relating to power purchase costs for 2022-23 and revenue adjustments for 2023-24. A True-Up is an adjustment that aligns estimated electricity costs or consumption with the actual cost and consumption recorded for a period.
The Commission determined that Rs. 5,186.29 crore related to power purchase during 2022-23. TGSPDCL accounted for Rs. 3,329.97 crore of this amount, while TGNPDCL accounted for Rs. 1,856.32 crore. The revenue True-Up amount for 2023-24 was fixed at Rs. 2,448.93 crore, comprising Rs. 2,335.45 crore for TGSPDCL and Rs. 113.48 crore for TGNPDCL.
The agricultural sector’s share of the True-Up amount was assessed at Rs. 2,214.99 crore for the two financial years. This includes Rs. 1,442.49 crore within the TGSPDCL jurisdiction and Rs. 772.50 crore within the TGNPDCL jurisdiction. The Commission directed that this amount be recovered from the state government rather than farmers, citing the existing free electricity policy for agriculture.
The remaining Rs. 5,420.23 crore will be collected from eligible consumers in other categories. TGSPDCL’s share is Rs. 4,222.93 crore and TGNPDCL’s share is Rs. 1,197.30 crore. The recovery period has been fixed at 29 billing months for the TGSPDCL region and 26 billing months for the TGNPDCL region.
The monthly amount payable by each consumer will be calculated using their electricity usage during 2022-23 and 2023-24. The Commission has also imposed a ceiling: the total amount recovered from an individual consumer cannot exceed the True-Up amount applicable to that consumer’s consumption during the two financial years.
The additional charge must appear as a separate line item on electricity bills rather than being merged with the regular bill. Each bill must identify the financial year linked to the recovery, the monthly consumption used for the calculation and the applicable rate. If one bill includes recovery amounts for both financial years, the two amounts must be shown separately.
The order was issued by the Commission comprising Chairman Justice Devaraju Nagarjuna and Members Raghu Kancharla and Cherukuri Srinivasa Rao. It follows an earlier direction that left the recovery mechanism to be determined later. The latest directive sets out the rates, duration, consumer-level ceiling and billing disclosures for the recovery beginning in November 2026.
