Targeted Power Tariff Hike in Telangana to Spare Low and Middle-Income Groups, Says TGSPDCL Chief

Musharraf Ali Faruqui (Telangana 2014), the chairman and managing director of Telangana Southern Power Distribution Company Limited (TGSPDCL), recently addressed public concerns over the proposed power tariff hike in Telangana. Speaking during a public hearing, Faruqui clarified that the hike would largely target high-usage consumers while ensuring low and middle-income groups remain unaffected by any increase.
According to Faruqui, consumers using up to 300 units of electricity will continue paying their current rates, shielding the majority of households from any additional financial burden. The hike will apply only to those using more than 300 units, which aims to balance the financial needs of the state’s electricity distribution companies (DISCOMs) while maintaining affordability for essential consumption.
This decision is part of a larger proposal submitted by the DISCOMs as part of their Annual Revenue Requirement (ARR) for the fiscal year 2024-25. The plan seeks to raise Rs 1,200 crore to address a significant revenue deficit of Rs 14,222 crore.
Efforts to Improve Distribution Efficiency
Faruqui also highlighted significant improvements in power distribution efficiency across the state. Distribution losses, once a major issue, have been reduced to 4.75 percent, while aggregate technical and commercial losses were brought down to 19.03 percent. These reductions reflect the success of ongoing efforts to optimize the power supply chain.
While the TGSPDCL clarified the limited scope of the tariff hike, opposition leaders, including S Madhusudhana Chary, expressed concerns. Chary urged the Telangana Electricity Regulatory Commission (TGERC) to reject the proposal, arguing it could still negatively impact certain consumer segments. The decision now rests with the TGERC, which will determine the final approval of the proposed hike.