Telangana ERC Flags High Short-Term Power Purchase Plans
POWER & RENEWABLE ENERGY

Telangana ERC Flags High Short-Term Power Purchase Plans

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.

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.

Next Story
Resources

Origen Realty appoints Poulomi Ray as CMO

Origen Realty has appointed Poulomi Ray as Chief Marketing Officer, strengthening its leadership team as it advances its growth and brand strategy. Poulomi Ray brings nearly two decades of experience in brand building and marketing across real estate and hospitality sectors, with prior roles at Signature Global, DLF Limited, Paras Buildtech, MGM International and Hilton. In her new role, she will lead marketing and brand direction at Origen Realty, focusing on visibility, differentiation and market engagement as the company progresses its integrated development plans in Gurugram. Commenting..

Next Story
Building Material

Haver & Boecker Niagara to showcase solutions at Hillhead

Haver & Boecker Niagara will showcase its mineral processing technologies at Hillhead 2026, scheduled from June 23–25 in Buxton, UK.At Stand PA3, the company will present its end-to-end solutions including screeners, screen media and advanced diagnostics, with a focus on improving efficiency, uptime and throughput for aggregates producers.Highlighting its screen media portfolio, the company will feature Ty-Wire media with hybrid design offering up to 80 per cent more open area, alongside FLEX-MAT® solutions designed to enhance wear life and throughput while reducing blinding and cloggin..

Next Story
Real Estate

CREDAI-MCHI meets Maharashtra Revenue Minister on issues

Navin’s, a Chennai-based real estate developer, has won the 17th CIDC Vishwakarma Award 2026 for its residential project Navin’s Hanging Gardens located on Arcot Road, Valasaravakkam. The award was presented by the Construction Industry Development Council (CIDC) under the category of Best Construction Projects, recognising the development’s achievement in innovation, design excellence and sustainability.The award was received by Chandrasekar PN, General Manager, Technical, Navin’s, at the ceremony held in New Delhi.Inspired by the legendary Hanging Gardens of Babylon, the project has ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement