In the Matter of TGERC (Electricity Supply Code) Draft (Third Amendment) Regulation, 2026 – EQ
Summary:
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### Background / Reason for Amendment
– **TGSPDCL** (Telangana State Power Distribution Company Limited) submitted proposals to amend **Clause 4.7.3** of the Principal Regulation.
– The objective is to remove **disparity** between:
– Interest rate charged to consumers on **outstanding bills when instalments are granted** (as per Tariff Order), and
– Interest rate payable by DISCOMs to consumers on account of **erroneous billing**.
### Objective of the Amendment
To ensure **uniformity** in interest rates for:
1. Interest charged to consumers for non-payment of arrears within due date.
2. Interest payable by DISCOMs to consumers for their billing errors.
### Legal Basis
– Section 181(1) read with **Section 50** of the Electricity Act, 2003
– Electricity (Procedure for Previous Publication) Rules, 2005
### Current Status
– **Draft regulation** has been prepared.
– Hosted on TGERC website: **www.tgerc.telangana.gov.in**
### Call for Public Comments
– Inviting **comments / suggestions / objections** from:
– Stakeholders
– Licensees
– General public
– **Last date & time:** 04.05.2026 (by **05:00 PM**)
### Submission Mode
– **In writing** to:
Commission Secretary, TGERC
Vidyut Niyantran Bhavan, G.T.S Colony, Kalyan Nagar, Hyderabad-500 045
– **By email:** secy-tgerc@telangana.gov.in
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## Key Business Points
| # | Business Point |
|—|—————-|
| 1 | **Uniform interest rate likely** – The amendment aims to align the interest rate charged to consumers on overdue instalments with the interest rate DISCOMs pay for their own billing mistakes. This removes current asymmetry. |
| 2 | **Potential financial impact on consumers** – If the DISCOM’s erroneous billing interest rate is lower than the consumer overdue rate, the amendment may **reduce the interest burden on consumers** for late payments under instalment plans. |
| 3 | **Potential revenue impact on DISCOMs** – Conversely, if the uniform rate is set higher than what DISCOMs currently pay for errors, it could increase their payout liability for billing mistakes. |
| 4 | **Compliance & billing system upgrades** – DISCOMs may need to improve billing accuracy to avoid higher interest payouts, making **investment in IT/billing systems** a business priority. |
| 5 | **Short comment window** – Stakeholders have only until **04.05.2026** (~3 weeks) to analyse and submit feedback – requires quick legal/financial review. |
| 6 | **Regulatory certainty for licensees** – Once finalised, this amendment will provide a single, transparent interest rate framework, reducing disputes over applicable rates. |
| 7 | **Opportunity for stakeholder advocacy** – Industrial/commercial consumers, industry associations, and DISCOMs can submit objections/suggestions to influence the final interest rate. |
| 8 | **No draft text in public notice** – Businesses must download the draft regulation from TGERC’s website to understand the proposed rate and clause wording before commenting. |
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