Telangana Introduces Electricity Billing Rules With 18% Interest

10 Jun 2026 CW Team

The Principal Regulation, first notified as Regulation No. 5 of 2004 by the Andhra Pradesh Electricity Regulatory Commission, was adopted by Telangana after state formation in 2014 and amended in 2006 and 2013. The update revises procedures on billing, disconnection and restoration of supply and clarifies licensee responsibilities.

The amendment followed a proposal from the Telangana State Southern Power Distribution Company Limited (TGSPDCL), which identified a mismatch between interest charged to consumers on delayed instalment payments and interest paid by distribution companies when consumers were overcharged. TGERC invited public comments on 13 April 2026 and finalised the rule after reviewing stakeholder feedback.

A key change replaces Clause 4.7.3 of the Principal Regulation so that when a consumer lodges a complaint and the distribution company finds an error the company must immediately issue a corrected bill and set a fresh payment due date. The due date cannot be earlier than seven days from the date the consumer receives the corrected bill. Where excess amounts have already been collected the distribution company must refund the additional money by adjusting it against future monthly bills.

The amendment requires distribution companies to pay interest at the rate of 18 per cent per annum on excess amounts collected from consumers owing to incorrect billing to ensure parity between consumers and utilities. The regulation will apply across Telangana and will come into force from the date of its publication in the Telangana Gazette. The measure aims to improve accountability and timeliness in billing while protecting consumer finances.

The Telangana Electricity Regulatory Commission (TGERC) issued the Electricity Supply Code Third Amendment Regulation, 2026 on 27 May 2026 to strengthen consumer protection in electricity billing. The amendment requires distribution companies to correct billing errors promptly and to provide financial remedies for affected consumers. The regulation was issued under the authority of Commission Secretary V. Ramchander. The Principal Regulation, first notified as Regulation No. 5 of 2004 by the Andhra Pradesh Electricity Regulatory Commission, was adopted by Telangana after state formation in 2014 and amended in 2006 and 2013. The update revises procedures on billing, disconnection and restoration of supply and clarifies licensee responsibilities. The amendment followed a proposal from the Telangana State Southern Power Distribution Company Limited (TGSPDCL), which identified a mismatch between interest charged to consumers on delayed instalment payments and interest paid by distribution companies when consumers were overcharged. TGERC invited public comments on 13 April 2026 and finalised the rule after reviewing stakeholder feedback. A key change replaces Clause 4.7.3 of the Principal Regulation so that when a consumer lodges a complaint and the distribution company finds an error the company must immediately issue a corrected bill and set a fresh payment due date. The due date cannot be earlier than seven days from the date the consumer receives the corrected bill. Where excess amounts have already been collected the distribution company must refund the additional money by adjusting it against future monthly bills. The amendment requires distribution companies to pay interest at the rate of 18 per cent per annum on excess amounts collected from consumers owing to incorrect billing to ensure parity between consumers and utilities. The regulation will apply across Telangana and will come into force from the date of its publication in the Telangana Gazette. The measure aims to improve accountability and timeliness in billing while protecting consumer finances.

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