TGERC rules solar hour rebates require full tariff process

The Telangana Electricity Regulatory Commission (TGERC) has disposed of restored interlocutory applications on Time of Day (ToD) tariffs, holding that implementation of solar hour rebates under the Electricity (Rights of Consumers) Amendment Rules, 2023 must be carried out through a full tariff determination process. The order, dated April 2, 2026, arises from proceedings involving M/s Radha Smelters Pvt Ltd and the state distribution companies (TGDISCOMs), following a limited remand from the Appellate Tribunal for Electricity (APTEL).

The dispute originated from TGERC’s order dated November 15, 2025, which approved withdrawal of a night time rebate of Rs 1.50 per unit for High Tension (HT) industrial consumers. M/s Radha Smelters Pvt Ltd challenged the decision before APTEL. While APTEL did not set aside the withdrawal, it observed that the Commission had not examined Rule 8A of the Electricity (Rights of Consumers) Amendment Rules, 2023, which requires tariffs during solar hours to be at least 20% lower than normal tariffs. The matter was remanded to TGERC on this limited issue.

In its order, TGERC acknowledged that the 2023 Amendment Rules are binding subordinate legislation. However, it held that the scope of the remand was confined to examining applicability of Rule 8A and did not extend to introducing a new tariff component. The Commission stated that applying a 20% solar hour rebate for a specific category would amount to a substantive modification of the FY 2025-26 tariff order and would require rebalancing tariffs across other time blocks and consumer categories.

TGERC stated that any implementation of peak and solar hour tariff provisions can only be undertaken through a tariff proceeding under Sections 61, 62, and 64 of the Electricity Act, 2003, with public notice and stakeholder consultation. It held that the limited remand had been complied with by examining Rule 8A without altering the existing tariff framework.

The order leaves the withdrawal of the night time rebate unchanged. TGERC also agreed with submissions of TGDISCOMs that the issue had attained finality, as APTEL had not set aside the earlier order. The Commission found no grounds to interfere with its November 2025 decision.

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