The Telangana Electricity Regulatory Commission has directed power utilities to improve transparency in short-term power procurement after finding the volumes proposed for FY 2026–27 to be on the higher side and in need of a prudence check. The regulator noted that projected volumes require closer scrutiny against actual demand.

Distribution companies projected an overall energy surplus for FY 2026–27 while proposing significant short-term purchases. The commission said energy balance must be assessed not only annually but also across intra-day and seasonal variations and asked utilities to justify short-term plans with block-wise assessments.

The regulator accepted that peak-hour deficits and limited solar availability during some time blocks may justify market purchases but said the scale of acquisitions warrants closer examination. It stressed that merit order dispatch should govern actions and that thermal stations should not be backed down unless market prices are demonstrably lower than the variable cost of backed-down stations.

Distribution companies must maintain comprehensive records of all short-term transactions, including those through power exchanges, and submit monthly reports for verification during true-up proceedings. The commission observed that fixed cost liabilities under long-term power purchase agreements are unavoidable to an extent but warned against persistent surplus that leads to backing down and extra burden on consumers.

The regulator asked the state government to pursue unresolved inter-state allocations for the Machkund and Tungabhadra hydroelectric projects with neighbouring states and required Discoms to follow up and report. It highlighted complaints about inadequate maintenance of distribution infrastructure and directed periodic inspections, preventive maintenance and timely fault rectification. An incentive of Rs zero point five per unit will apply from 10 am to six pm while peak charges for six am to 10 am and six pm to 10 pm have been raised from Rs one to Rs one point five. The ex gratia for fatal electrocution of non-departmental persons has been raised from Rs zero point five million (mn) to Rs zero point eight million (mn) with effect from April one, 2026.