The Telangana Electricity Regulatory Commission (TGERC) has officially issued the “Third Amendment to the Electricity Supply Code Regulation, 2026.” This final notification introduces a significant consumer protection mandate, requiring all electricity distribution companies (DISCOMs) across the state to pay 18% annual interest on excess amounts collected from consumers due to overbilling. The regulation is applicable statewide and becomes enforceable upon its formal publication in the Telangana Gazette.
Origins and Regulatory Context
The new notification amends the “Principal Regulation” (Regulation No. 5 of 2004), a foundational framework originally introduced by the Andhra Pradesh Electricity Regulatory Commission and subsequently adopted by TGERC. This 2026 update follows previous regulatory refinements enacted in 2006 and 2013, marking a continued evolution of the state’s Electricity Supply Code.
The catalyst for the current amendment was a formal proposal from the Telangana State Southern Power Distribution Company Limited (TGSPDCL). The utility identified a systemic imbalance: while licensees charged consumers an 18% interest rate on delayed payments and installments, utilities typically paid significantly lower or no interest when consumers were overcharged due to billing errors.
To address this lack of parity, TGERC issued a draft notification on April 13, 2026, inviting feedback from stakeholders, including consumers and power utilities. Following a review of these submissions, the Commission finalized the amendment to ensure financial fairness between the utilities—including both TGSPDCL and the Northern DISCOM (TGNPDCL)—and their customers.
Procedural Amendment to Clause 4.7.3
The regulation introduces technical modifications to Clause 4.7.3 of the Principal Regulation, establishing a structured response mechanism for billing disputes. When a consumer files a complaint regarding a suspected billing error, the following steps are now mandatory for the licensee:
- Mandatory Licensee Verification: The distribution company must conduct a formal verification to determine if an error exists.
- Immediate Bill Correction: Upon confirmation of an error, the licensee must immediately issue a corrected bill to the consumer.
- Revised Due Date: The licensee is required to establish a new payment due date specifically for the corrected statement.
New Timeline Rules for Corrected Billing
The amendment establishes a strict window for payments following a billing dispute to ensure consumers are not penalized for administrative delays. Licensees must provide consumers with a minimum of seven days from the actual date of receipt of the corrected bill to clear their payments. This ensures the due date is calculated based on when the consumer actually receives the rectified document, rather than the date of issuance.
Refund and Interest Mechanism
In instances where a consumer has already paid an incorrect bill resulting in a surplus, the amendment mandates a clear recovery process. These surplus amounts must be adjusted against the consumer’s future billing cycles.
Central to this amendment is the mandatory interest provision designed to achieve parity. Licensees are now required to pay interest at a rate of 18% per annum on any excess amount held due to overbilling. This rate explicitly matches the interest rate charged to consumers for late payments, eliminating the previous financial advantage held by utilities in billing disputes.
Scope and Implementation
Signed by Commission Secretary V. Ramchander, the Third Amendment to the Electricity Supply Code Regulation, 2026, governs all electricity services throughout Telangana. The scope of the regulation includes:
- Standardized billing and billing dispute procedures.
- The recovery of electricity charges.
- Disconnection and restoration of service protocols.
The amendment is final and becomes strictly enforceable across all distribution jurisdictions in the state effective from the date of its publication in the official Telangana Gazette.
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