Hyderabad DISCOMs plan ₹5,000 crore burden on consumers
HYDERABAD: Power distribution companies are preparing to levy an additional burden of about ₹5,000 crore on electricity consumers through indirect measures, even as they ruled out a direct tariff hike ahead of the local body elections.
DISCOM chairpersons on Monday submitted the Annual Revenue Requirement (ARR) proposals for 2026–27 to the Electricity Regulatory Commission. The ERC will seek public feedback before issuing the tariff order, which will take effect on April 1 next year. Officials declined to disclose details citing the election schedule, but reliable sources outlined the key proposals.
DISCOMs report ₹20,000 crore deficit for previous year
The utilities earned about ₹45,000 crore from power charges last year, while power purchases, operations and maintenance cost nearly ₹65,000 crore. The revenue–expenditure gap stood at about ₹20,000 crore.
Though coal prices eased and reduced purchase costs, the companies said they require funds to upgrade transformers, enhance feeder capacity and install underground cabling to meet rising demand. Loan interest obligations are also increasing.
They estimated an additional resource requirement of ₹6,000 crore, taking the total subsidy expectation from the state government to nearly ₹26,000 crore. The government paid around ₹12,000 crore last year towards free farm power, 200 free units under the Gruhajyothi scheme and other welfare categories. The DISCOMs have proposed a further ₹5,000 crore subsidy increase this year.
Fixed charges may rise sharply for one crore consumers
Consumers currently pay ₹10 per kilowatt every month as fixed charges. The utilities want this raised to ₹50 per kilowatt, citing higher rates in Karnataka and other states. With an average sanctioned load of 3 kW per consumer, the monthly burden may rise by ₹150, or ₹1,800 a year.
About 40 lakh Gruhajyothi beneficiaries will not bear this directly, as the additional burden will fall on the government subsidy. The remaining 60 lakh consumers will have to absorb the hike. The DISCOMs have also proposed minor tariff revisions for industries.
Overall, the proposals aim to generate about ₹5,000 crore in additional revenue.
Subhead: Slab changes and tighter oversight on free power
The companies have suggested changes in consumption slabs. The first slab currently charges ₹1.9 per unit for 1–50 units. They propose shifting consumers to the next slab ₹3 per unit if annual consumption exceeds 600 units. This could raise costs for nearly 25 lakh consumers.
The state supplies free power round the clock to about 30 lakh agricultural pump sets. The DISCOMs are considering bringing them under a newly created utility and installing smart meters at each transformer. Officials maintain that smart meters are meant only for energy accounting, though the move could enable future controls on free power.
