Hyderabad: In a major restructuring of Telangana’s power distribution system, the state govt has shifted nearly 29 lakh electricity connections, including agriculture, lift irrigation schemes, Hyderabad water supply and Mission Bhagiratha services, to a newly-created third power distribution company.Orders formalising the third discom were issued by the energy department on Wednesday. The new entity will handle specific service-oriented connections, in addition to the existing southern (TGSPDCL) and northern (TGNPDCL) power distribution companies. Along with consumers, the govt transferred assets worth about ₹36,000 crore to the new discom. It has also taken on liabilities of nearly ₹27,000 crore and loans amounting to ₹9,000 crore. The discom will be responsible for recovering around ₹35,000 crore in outstanding dues from various govt departments and settling payments to power generators. The govt said the move was aimed at stabilising the finances of the power sector while continuing free and subsidised electricity for priority sectors such as agriculture and drinking water supply. “Due to the gap between the average billing rate and the average cost of service, the financial position of the two discoms deteriorated over time. This financial situation of the two discoms impacted the ability to secure funding for various developmental initiatives by the govt. It also restricted their participation in critical infrastructure programmes such as the revamped distribution sector scheme and posed challenges in ensuring reliable and quality power supply to consumers,” the govt said in the GO. PPAs to be realignedWith the creation of the third discom, power purchase agreements will be realigned, as existing PPAs were tied only to the two older discoms. Operation and maintenance of distribution transformers and lines will continue through manpower transferred from them. The new discom will file its aggregate revenue requirement separately. To mobilise revenue, it may levy wheeling charges on its consumers, mainly govt agencies, subject to approval by the electricity regulator.
