The Telangana government has recently announced that it will provide the state’s power distribution companies (discoms) with a sum of Rs 12,718.40 crore in true-up charges payment. This move is aimed at improving the financial health of the discoms and ensuring uninterrupted power supply to consumers across the state.
True-up charges refer to the difference between the revenue that a discom is allowed to collect from consumers and the actual revenue that it earns. This difference is calculated at the end of each financial year and is known as the true-up amount. If the discom has collected more revenue than it was allowed to, it must refund the excess amount to consumers. On the other hand, if it has collected less revenue than it was allowed to, it can recover the shortfall from consumers in the form of higher tariffs.
In Telangana, the discoms have been facing financial difficulties due to various reasons such as high transmission and distribution losses, low collection efficiency, and mounting dues from government departments and other consumers. This has resulted in a huge true-up amount that they owe to the state electricity regulatory commission (SERC).
To address this issue, the Telangana government has decided to provide the discoms with the required funds for paying off their true-up charges. This will help them clear their dues with the SERC and improve their financial position. It will also enable them to invest in infrastructure upgrades and reduce their losses, which will ultimately benefit consumers in terms of better quality of power supply and lower tariffs.
The government’s decision to provide such a large sum of money to the discoms is a significant step towards achieving its goal of making Telangana a power surplus state. It shows its commitment towards ensuring uninterrupted power supply to all sections of society, including farmers, industries, and households.
In conclusion, the Telangana government’s decision to provide Rs 12,718.40 crore in true-up charges payment to the discoms is a welcome move that will help improve the financial health of the power sector in the state. It is a step towards achieving the goal of providing affordable and reliable power supply to all consumers and making Telangana a power surplus state.
