CESS brought under NPDCL purview after TERC order

The Telangana Electricity Regulatory Commission (TERC) has amended the licence of Northern Power Distribution Company of Telangana Limited (NPDCL) to include the Cooperative Electric Supply Society (CESS) in Rajanna-Sircilla.

Rajanna-Sircilla: The Cooperative Electric Supply Society Limited (CESS) in Sircilla has come under the purview of Northern Power Distribution Company Limited (TGNPDCL). In this regard, Telangana Electricity Regulatory Commission (TERC) issued an OP (operation) number 8 of 2026 on Tuesday, amending the distribution license of NPDCL and extending its services to all the consumers of CESS.

Rajanna-Sircilla area, including the consumers of CESS Sircilla, is also included in the existing power supply areas of NPDCL. The area of supply of NPDCL is amended with effect from April 1 2026, TERC mentioned in its orders.

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In the wake of corruption, pending bills, poor maintenance and irregularities in council body election, the state government has decided to merge CESS with the NPDCL under section 86 (2) of the Electricity Act 2003. As part of its plans, the government has not renewed its license which expired on March 31, 2026.

Chairman and Managing Director, NPDCL, was directed to take appropriate steps to merge the distribution and retail supply of electricity in the CESS area with NPDCL. The CMD was also instructed to file a petition before the TERC to amend the license granted to NPDCL with a view to extending the scope of its license to include the consumers of the CESS.

Based on the instructions from the government, NPDCL started looking after the activities of CESS from April 4, 2026. Challenging the government’s decision, the CESS governing body filed a petition in court.

While the case is pending with the court, the TERC issued orders.
The issue of merger first time came to the fore during the inquiry on the proposed electricity tariff for 2024-25 to 2028-29 by TERC in 2025. Highlighting problems prevailing the CESS, some of them wanted the government to merge CESS in NPDCL.

TERC also recommended the merger of the electric supply society citing poor business activity and pending bills as reasons. In the first week of September 2025, the chief secretary reportedly sought the opinion of the Registrar of Cooperative Societies.

Though corruption, pending bills and poor maintenance were cited as reasons for merger, political equations are said to be the reason. The entire CESS council including chairman, vice-chairman and majority directors belong to the BRS party.

CESS is one among a few electric supply societies started on pilot basis across the country by the National Rural Electrification Corporation in 1970. It is the first society in erstwhile United Andhra Pradesh. Operating from Sircilla town, CESS supplies power to households, industries, agriculture and others in Sircilla and Vemulawada constituencies.

Started with 420 services, it managed to gain 3.46 lakh members. 355 employees currently work in the society.