The Telangana Electricity Regulatory Commission (TGERC) has approved amendments to the time-of-day (ToD) tariff structure for the Southern Power Distribution Company and the Northern Power Distribution Company.

Under the revised structure, the 22:00–06:00 ToD tariff over retail supply energy charges will be zero from December 1, 2025, to March 31, 2026, replacing the earlier ₹1.50 (~$0.017)/kWh that was applicable for April–November of the financial year (FY) 2025–26.

Surcharges of ₹1 (~$0.011)/kWh during the 06:00–10:00 and 18:00–22:00 peak time slots remain unchanged for the full FY 2026.

These ToD tariffs apply to HT-I(A) Industrial and Poultry, HT-II(A) Others, HT-II(B) Wholly Religious Places, HT-III (Airports, Railway Stations, Bus Stations), and HT-IX electric vehicle charging stations.

Background

The two power distribution companies (DISCOMs) had filed petitions in August 2025 seeking changes to the ToD tariffs approved earlier in the retail supply tariff. They requested that the existing night-time incentive be removed, citing higher power purchase costs during night hours, increased reliance on costlier thermal and market purchases, and delays in commissioning units of the Yadadri Thermal Power Station.

They argued that the incentive was resulting in significant revenue outflow and that daytime availability, particularly from solar sources, was substantially higher than nighttime availability.

Stakeholders raised objections on several grounds, including the maintainability of the petitions under Section 62(4) of the Electricity Act, 2003, which ordinarily restricts tariff amendments within a financial year.

They also stated that industries had already planned operations based on the announced tariff structure, that the ToD rebate would support demand-side management by encouraging nighttime usage, and that continuous-process industries would be adversely affected.

Some stakeholders contended that the existing ToD structure was essential for grid stability and that the DISCOMs had not provided adequate technical data to justify the change.

In response, the DISCOMs submitted that the proposal was their first amendment request for the financial year and therefore did not constitute a violation of Section 62(4). They reiterated that nighttime procurement costs were higher than daytime costs, that the rebate was no longer aligned with prevailing system conditions, and that detailed load curves, hourly power purchase data, and technical analyses were placed before the Commission.

The DISCOMs also pointed out that solar generation, comprising nearly 9,800 MW of utility-scale plus around 1,000 MW of rooftop solar, creates surplus daytime availability that can absorb load shifts from night hours.

Commission’s Analysis

The Commission observed that daytime energy availability exceeded demand, while nighttime procurement relied more on costlier sources. It noted that delays in the commissioning of Yadadri Thermal Power Station had reduced expected night-time availability, requiring additional market purchases.

It noted that the earlier incentive of ₹1.50 (~$0.017)/kWh during 22:00 to 06:00 had led to substantial revenue outflows for the DISCOMs. It found that daytime solar generation was sufficient to meet the morning and evening peaks, based on the submitted load curves.

The Commission noted that morning peaks occur around 08:00 and evening peaks around 17:00, both periods adequately served by daytime solar generation. The power purchase cost charts submitted by the DISCOMs showed that the cost per unit during the 22:00 to 06:00 time slot was consistently higher than during the 06:00 to 10:00 and 10:00 to 18:00 time slots.

The regulator held the amendment request did not violate Section 62(4), since the DISCOMs had sought no tariff revision during the original annual revenue requirement filing for FY 2026. It concluded that revising the ToD tariff was necessary to address the mismatch between availability and demand, contain revenue loss, and reduce dependence on high-cost power purchases.

The Commission added that continuing the ₹1.50 (~$0.017)/kWh rebate through March 2026 would result in major revenue deficits that would ultimately be passed on to consumers during the true-up process. It therefore viewed the amendment as both financially prudent and operationally justified.

Accordingly, the Commission approved the amendment to the ToD tariff. The rest of the tariff order issued in April 2025 also remains unaltered.

The Commission directed the DISCOMs to report the consequent revenue impact in their true-up petitions for FY 2026.

The Commission recently issued the final regulations for grid-interactive rooftop solar, introducing a comprehensive framework governing metering for consumers in the state.

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