Telangana Scraps Additional Surcharge for Open-Access Power from Oct 2025

Telangana Scraps Additional Surcharge for Open-Access Power from Oct 2025

October 26, 2025

The Telangana Electricity Regulatory Commission decided that there will not be any extra surcharge on the users of open-access power in the second half of the 2025–26 financial year starting from October 1, 2025, and continuing up to March 31, 2026.

Earlier, the state distribution companies — Southern Power Distribution Company of Telangana and Northern Power Distribution Company of Telangana (together TGDISCOMs) — had sought a surcharge of ₹0.35/kWh.

After assessing power-sale data, time-block usage and stranded capacity, the Commission found that there were no net recoverable stranded charges from open-access consumers – that is, the fixed transmission and distribution costs were already compensated by the demand charges collected. This means that industrial and commercial consumers of open-access power in Telangana are now allowed to source electricity from third-party suppliers without any additional per-unit surcharge, thus providing a welcome relief for businesses dependent on open-market power.