⚡ Quick Read
- What happened: The Telangana Electricity Regulatory Commission (TGERC) has hiked transmission tariffs to ₹90.90/kW/month and increased wheeling charges across TGSPDCL and TGNPDCL networks for FY 2027.
- Why it matters: Increased open access and transmission costs will directly impact the landed cost of power for C&I consumers and renewable energy developers operating in Telangana.
- Watch: How these cost-reflective tariff hikes influence the viability of future open-access solar and wind projects in the state.
Background and Context
The Telangana Electricity Regulatory Commission (TGERC) has finalized the revised tariff structure for power transmission, distribution wheeling, and State Load Despatch Center (SLDC) operations for the fiscal year 2026–27. Operating under the Multi-Year Tariff (MYT) Regulations, 2023, the Commission conducted a thorough review of the Aggregate Revenue Requirement (ARR) submitted by state distribution licensees. The decision reflects the regulatory mandate to ensure cost-reflective pricing while balancing the financial health of utilities against the burden on end-consumers.
Key Details
Effective from April 1, 2026, to March 31, 2027, the new tariff regime introduces significant upward revisions. The transmission tariff for long- and medium-term users has been increased to ₹90.90/kW/month, a notable rise from the previous year’s ₹68.64/kW/month. The SLDC charges have been set at ₹3,349.03/MW/month.
Wheeling charges for both the Southern Power Distribution Company of Telangana (TGSPDCL) and the Northern Power Distribution Company of Telangana (TGNPDCL) have seen substantial hikes. For TGSPDCL, 33 kV charges rose to ₹0.0885/kVA/hour (from ₹0.0647), and 11 kV charges increased to ₹0.2876/kVA/hour (from ₹0.2650). TGNPDCL saw sharper increases, with 33 kV charges climbing to ₹0.1392/kVA/hour (from ₹0.0441) and 11 kV charges rising to ₹0.4678/kVA/hour (from ₹0.3662).
What This Means for EPCs and Developers
For EPC contractors and developers, these revisions signify a higher operational expenditure for open-access projects. The Commission explicitly rejected requests for preferential or concessional charges for green energy users, citing that the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022, do not mandate such concessions. Developers must now account for these higher fixed costs when calculating the Internal Rate of Return (IRR) for C&I solar and wind projects. The rejection of preferential treatment underscores a move toward a uniform, non-discriminatory tariff environment where renewable energy projects must compete on pure generation efficiency rather than regulatory subsidies.
What Happens Next
The approved charges will remain in force throughout FY 2027. Stakeholders are advised to factor these specific transmission and wheeling costs into their financial modeling for all upcoming bids and open-access agreements in Telangana. As the state continues to prioritize cost-reflective tariffs, developers should anticipate that future true-up adjustments and capital expenditure requirements will continue to influence tariff trajectories in subsequent years.
