TGERC (Licensee’s Duty for Supply of Electricity on Request) Second Amendment Regulations, 2026 – EQ

Summary:

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**1. Official Details of the Amendment:**
– **Regulation Name:** Telangana Electricity Regulatory Commission (Licensee’s Duty for Supply of Electricity on Request) Second Amendment Regulation, 2026.
– **Regulation No.:** 01 of 2026.
– **Date of Notification:** 17th January 2026.
– **Effective From:** The date of its publication in the Telangana Gazette.
– **Amends:** The Principal Regulation (No. 4 of 2013) and its First Amendment (No. 1 of 2015).

**2. Primary Objective:**
– To **simplify and expedite** the process for releasing **new LT connections** and **additional loads** in electrified areas.
– To introduce **uniform, objective, and load-based Service Line Charges**, eliminating the need for individual site inspections and case-by-case estimations.

**3. Key Amendments Introduced:**

**A. New Service Line Charges (SLC) for Overhead Line Connections (Clause 7.1):**
– Applies to new/additional **LT connections** (excluding LT-VIII: Temporary supply & Electrification of Layouts) within **1 km of an electrified network**.
– Charges are **per kW of contracted load** and vary by consumer category.
– **Excludes** cost of terminal and metering arrangements (borne by licensee).
– **Distribution Licensee must supply and erect the Distribution Transformer at its own cost and maintain it.**

**B. Category-wise Service Line Charges (Rs./kW):**

| Category | Load Bracket | Service Line Charges |
| :— | :— | :— |
| **LT-I: Domestic** | Up to 1 kW | ₹500 |
| | Above 1–5 kW | ₹500 + ₹600/kW |
| | Above 5–20 kW | ₹2,900 + ₹1,500/kW |
| | Above 20 kW | ₹10,000/kW |
| **LT-II: Non-Domestic/Commercial, LT-VI (Street Lights), LT-VII (General)** | Up to 1 kW | ₹1,000 |
| | Above 1–5 kW | ₹1,000 + ₹1,200/kW |
| | Above 5–20 kW | ₹5,800 + ₹2,000/kW |
| | Above 20 kW | ₹10,000/kW |
| **LT-III: Industries** | Up to 20 kW | ₹4,000/kW |
| | Above 20 kW | ₹10,000/kW |
| **LT-IV: Cottage Industries** | All loads | ₹1,000/kW |
| **LT-V: Agriculture** | All loads | ₹1,000/kW (No ORC from farmers) |
| **LT-IX: EV Charging Stations** | Up to 1 kW | ₹1,000 |
| | Above 1–20 kW | ₹1,000 + ₹1,200/kW |
| | Above 20 kW | ₹8,000/kW |

**Important Note for Apartments/Complexes:** Combined contracted load of the building is considered for levying SLC.

**C. Revised Rules for Development Charges & Transformers (Clause 8.3):**
– **For dedicated transformers** in commercial complexes/apartments **NOT covered under the new SLC system**, the licensee recovers the **full transformer cost**, owns and maintains it, and cannot supply other consumers from it. **No Development Charges** are levied.
– **For connections COVERED under the new SLC system (Clause 7.1):**
– **Load ≤ 20 kW** (individual or combined for buildings): Pay **Development Charges** (as per Schedule) **plus SLC**.
– **Load > 20 kW** (individual or combined for buildings): Pay **SLC only**. **No Development Charges**.

**D. New Clauses Added:**
– **Clause 13:** Empowers the Commission to issue **orders and practice directions** for implementing this regulation.
– **Clause 14:** Grants the Commission the power to **amend, suspend, or repeal** any provision of this regulation in the future.

**4. Business Implications:**
– **For Consumers (Applicants):**
– **Predictable Costs:** Transparent, upfront Service Line Charges based on load and category.
– **Faster Processing:** Simplified process eliminates individual estimations and inspections for standard cases.
– **Lower Cost for Agriculture & Cottage Industries:** Fixed low rate of ₹1,000/kW.
– **EV Charging Support:** Separate, slightly lower tariff slab to promote EV infrastructure.
– **No Transformer Cost:** Licensee bears the cost and maintenance of the distribution transformer for connections under the new SLC system.

– **For Distribution Licensees (DISCOMs):**
– **Streamlined Operations:** Uniform charges reduce administrative burden.
– **Revenue Clarity:** Clear framework for recovering connection costs.
– **Asset Ownership & Maintenance:** Responsible for transformers under the new SLC system.
– **Proposal Right:** Can file for revision of Service Line Charges periodically.

– **For the Regulatory Framework:**
– **Standardization:** Moves away from discretionary site-specific estimates.
– **Promotes Electrification:** Simplified and subsidized rates for key sectors (Agriculture, Cottage Industries, EV).
– **Future Flexibility:** Commission retains power to issue directives and amend rules as needed.

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