Telangana Southern Power Distribution Company Limited (TGSPDCL) has officially stated its intention not to raise electricity tariffs for the upcoming financial year, 2026-27. This decision comes despite a projected revenue gap of approximately ₹9,583 crore. The company has submitted its proposals to the Electricity Regulatory Commission, explicitly ruling out any tariff increases, including time-of-day pricing adjustments.
The projected revenue requirement for TGSPDCL stands at ₹50,942 crore, while anticipated revenue from the current tariff structure is estimated at ₹40,959 crore. This leaves a deficit of ₹9,583 crore that the company expects the state government to absorb. Payments to power generation companies are pegged at ₹38,492 crore for the fiscal year.
Rising Demand and Consumer Base
Electricity demand continues its upward trajectory, with TGSPDCL estimating a peak demand of 20,975 megawatts for the next financial year. Recent peak demand figures highlight this trend: 18,139 MW was recorded statewide on March 3, with 11,129 MW within TGSPDCL's jurisdiction on the same day. Within the Greater Hyderabad Municipal Corporation (GHMC) limits, peak demand hit 4,421 megawatts on March 3.
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The consumer base under TGSPDCL has also expanded, reaching 1,20,95,963 individuals. This represents a notable increase, with around 12 lakh new consumers added in the last financial year alone.
Factors Influencing the Decision
Despite the financial shortfall, TGSPDCL points to several factors influencing its decision. The company claims a reduction in electricity theft following the implementation of the 'Griha Jyoti' scheme, which provides free electricity to a segment of household consumers.
Furthermore, supply and distribution losses have reportedly decreased from 8.30 percent to 8.04 percent. This improvement is attributed, in part, to the adoption of advanced technology. In the previous fiscal year (2020-21), these losses were as high as 9.6 percent. The state government has also provided subsidies totaling ₹1,930.66 crore to support the free power scheme.
The company has also employed power swap agreements with other utilities across India, which have reportedly saved TGSPDCL ₹1,614 crore. Investments of ₹578.88 crore have been channeled into strengthening the power distribution infrastructure.
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Sectoral Consumption Breakdown
Household consumption constitutes 23 percent of the total electricity usage under TGSPDCL. Other significant sectors include industry (31 percent), agriculture (21 percent), and commercial (16 percent), with the remaining 9 percent falling into other categories.
Background
The Telangana Southern Power Distribution Company Limited (TGSPDCL) is responsible for the distribution of electricity across several districts in Telangana, including those under the purview of the Greater Hyderabad Municipal Corporation (GHMC), and the erstwhile districts of Nalgonda, Mahbubnagar, Rangareddy, and Medak. The company's financial health and tariff policies are subject to review and approval by the Telangana Electricity Regulatory Commission (TGERC). The decisions made by TGSPDCL have a direct impact on millions of consumers, encompassing domestic, agricultural, and industrial users.