The Telangana Electricity Regulatory Commission (TGERC) has issued the Electricity Supply Code Third Amendment Regulation, 2026, requiring distribution companies (DISCOMs) to pay 18% interest per annum on excess amounts outstanding due to incorrect billing.

The regulation amends Clause 4.7.3 of the Andhra Pradesh Electricity Regulatory Commission Electricity Supply Code Regulation, 2004, which continues to apply in Telangana after the Commission adopted the erstwhile Andhra Pradesh Electricity Regulatory Commission’s previous regulations, decisions, directions, orders, licenses, and practice directions following the state’s bifurcation.

Under the amended clause, if a consumer files a complaint and the licensee finds the bill to be erroneous, the DISCOM must issue a revised bill with a revised due date. The revised due date cannot be earlier than 7 days after the revised bill is delivered to the consumer.

If the consumer has already paid an excess amount, it must be refunded through adjustments to subsequent bills. The licensee must also pay interest at 18% per annum on the excess amount outstanding due to the wrong billing.

TGERC said Telangana Southern Power Distribution Company had submitted proposals to amend Clause 4.7.3 to avoid disparity between the interest charged on outstanding bills when installments are granted under the tariff order and the interest payable to consumers in cases of erroneous billing.

The Commission said it examined the proposal to ensure uniformity between the interest charged to consumers for nonpayment of arrears within the due date and the interest payable by distribution companies for erroneous billing.

The regulation was issued after a public notice on April 13, 2026, and after considering suggestions and objections received from stakeholders and the DISCOMs.

The Commission recently retained the existing retail electricity tariff structure for the financial year 2026–27 while revising key components, including the cross-subsidy surcharge, additional surcharge, and other open access–linked charges.

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