TERC approves FY 2026-27 tariff with phased recovery of revenue gaps
The Tripura Electricity Regulatory Commission (TERC) has approved electricity tariffs for FY 2026-27, adopting a phased approach for recovery of past revenue gaps while avoiding the imposition of a separate regulatory surcharge. The order follows examination of the Aggregate Revenue Requirement (ARR) and tariff petitions filed by Tripura State Electricity Corporation Limited (TSECL).
The Commission’s approach was shaped by the Supreme Court’s ruling in BSES Rajdhani Power Ltd. vs. Union of India, which directed that past and current regulatory gaps be liquidated within defined timelines of seven years and three years respectively.
In line with these directions, TERC did not allow the entire approved true-up gaps for FY 2023-24 and FY 2024-25 to be passed through in the current tariff year. Instead, the Commission approved recovery of one-fifth of the FY 2023-24 gap and one-third of the FY 2024-25 gap through FY 2026-27 tariffs. Carrying cost on the approved gaps has also been permitted in accordance with prevailing regulatory provisions.
Rather than approving a separate Regulatory Surcharge as proposed by TSECL, the Commission revised fixed and energy charges across consumer categories to enable gradual recovery of the approved revenue gap while limiting the tariff impact on consumers. The restructuring was also aimed at bringing tariffs closer to levels prevailing in neighbouring states.
Under the revised structure, energy charges for domestic rural consumers in the 0-50 unit slab, and for domestic rural and urban consumers in the first two slabs of 0-50 units and 51-150 units, have been increased by 15 paise per unit. Consumers in higher domestic slabs of 151-300 units and above 300 units, along with irrigation, public water works, public lighting and special utility categories, will see an increase of 20 paise per unit. For all remaining consumer categories, the increase is 35 paise per unit.
The Commission has continued the earlier reform under which fixed charges for domestic single-phase and commercial consumers are billed on a load basis in Rs/kW rather than as a flat rate per connection.
TERC has also introduced a mechanism for automatic restatement of Contracted Load. Where recorded Maximum Demand exceeds the contracted load for three consecutive months, the contracted load will automatically stand revised upward to the highest recorded demand, subject to applicable load enhancement charges. No additional security deposit will be required in such cases. Consumers will also have the option to seek downward revision where demand remains below the contracted load for three consecutive months.
The order retains existing rebate provisions for selected consumer segments. A 10% rebate on energy charges will continue for categories including homestays, hospitals and mobile towers located in remote areas, as well as commercial and industrial activities operated exclusively by registered women self-help groups in remote locations. The Commission has also retained the 10% rebate for Information Technology (IT) and Information Technology Enabled Services (ITES) industries.
The Green Tariff of Rs 0.75 per kWh will continue for consumers opting to procure environmentally friendly power from TSECL.
TERC has further continued the Time of Day (ToD) tariff mechanism with differentiated pricing for solar, normal and peak hours. The mechanism will remain mandatory for all eligible consumers, and the Commission has directed installation of smart meters in cases where ToD-compatible meters are not available. All other rebates applicable under the previous tariff order will continue unchanged.
The featured photograph is for representation only.
