Starting in November, electricity charges in Telangana are likely to rise, adding a significant financial burden of approximately Rs. 1,200 crore on consumers. The state’s power distribution companies (DISCOMs) have proposed an increase in electricity rates to the Electricity Regulatory Commission (ERC).
These proposals include raising tariffs in the High Tension (HT) category and introducing new fixed charges for Low Tension (LT) consumers who use more than 300 units of electricity per month. The fixed charge in the LT category, which is currently Rs. 10 per kilowatt, will increase to Rs. 30 per kilowatt, impacting 26 lakh consumers and generating an additional ₹400 crore in revenue for the DISCOMs.
In the HT category, charges currently vary depending on connection capacity: Rs. 7.15 per unit for 33 KV, Rs. 7.65 for 11 KV, and Rs. 6.62 for 132 KV. The DISCOMs have requested to standardize these rates at Rs. 7.65 per unit across all categories, which will result in an additional burden of Rs. 800 crore on users. The tenure of the ERC chairman and members ends on October 29, raising concerns that the approval of these proposals might be expedited without sufficient scrutiny. If passed, the revised charges will come into effect from November 1.
However, experts are raising concerns about the inefficiency of the new power plants, which are operating at only 65% capacity, far below the expected 85%. Critics argue that this shortfall forces the state to purchase electricity at higher prices from the open market and enter into expensive short-term contracts.