Electricity bills in Telangana are set to increase from April 1, as power distribution companies (DISCOMs) are set to hike power tariffs with the Telangana State Electricity Regulatory Commission (TSERC) allowing them to collect additional revenue in 2022-23. The Commission has permitted an increase in power tariffs by 14%, against a hike of 18% recommended by the DISCOMs, TSERC chairman T Sriranga Rao told the media on March 23, Wednesday. With this, the tariffs for domestic consumers will go up by 50 paise per unit.

The increase in tariff will also apply to domestic consumers using up to 50 units per month, for whom the tariff will go up from Rs 1.45 per unit to Rs 1.95. This is the first time in 19 years that the power tariff has been increased for this category, according to The New Indian Express. 

For High Tension consumers, the tariffs will increase by Rs 1 per unit. The TSERC chairman said that while the DISCOMs proposed to collect a deficit of Rs 6,831 crore from consumers by hiking tariffs, TSERC allowed an additional collection of Rs 5,596 crore, considering the rise in power purchase cost. 

A subsidy of Rs 8,221.17 crore has been allowed by the state government for 2022-23, of which Rs 6,850 crore is the subsidy for agricultural consumers and Rs 1,466 crore for BPL (below poverty line) families, the TSERC chairman said. While the DISCOMs claimed the current revenue gap was Rs 16,866 crore, the TSERC approved a gap of Rs 14,237 crore, TSERC chairman T Sriranga Rao said. “The state government has increased subsidy commitment to Rs 8,221 crore this year, which is 38% more than last year,” he said, adding that the amount would be reimbursed to DISCOMs directly. 

There will be no change in tariff for salons consuming up to 200 units a month, cottage and agro-based industries and the agriculture sector, he said.