CESS future in dilemma as NPDCL does not renew its license

The future of Cooperative Electric Supply Society Limited remains uncertain after TERC failed to renew its licence. Amid merger talks with NPDCL, staff expressed concern, while political and administrative factors continue to influence the situation

Rajanna-Sircilla: The future of one of the oldest cooperative societies, Cooperative Electric Supply Society Limited (CESS), is in dilemma as Telangana Electricity Regulatory Commission (TERC) has not renewed its licence.

The TERC usually renews the society’s licence every five years. The licence issued in 2021 expired on March 31, 2026. Though CESS officials sent proposals for renewal in December 2025, there has been no response from TERC so far.

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On the other hand, Northern Power Distribution Company of Telangana Limited (NPDCL) is looking after the activities of CESS.

NPDCL Chairman and Managing Director K Varun Reddy visited CESS on Wednesday and held a meeting with officials. He informed that NPDCL would look after CESS activities till further instructions from the electricity regulatory commission.

However, staff are worried about the future of the society following rumours that the State government is contemplating merging the electric supply society with NPDCL.

Corruption, pending bills, poor maintenance and irregularities in CESS elections are said to be the reasons for the government’s decision. However, the society council is contemplating approaching the court opposing the government’s decision.

The issue of merger first came to the fore during the inquiry on the proposed electricity tariff for 2024-25 to 2028-29 by TERC in 2025. Highlighting problems that prevailed in the society, some had sought the government to merge CESS with NPDCL.

The commission 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.

Now, it has again come to the fore as TERC has not renewed its licence. Enraged over the issue, people registered protests in ‘Prajapalana Pragathi Pranalika’ programmes across the district and submitted representations to officials.

In this regard, local MLA and BRS working president KT Rama Rao gave representations to Deputy Chief Minister Mallu Bhatti Vikramarka and Co-operative Minister Thummala Nageshwar Rao.

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 the chairman, vice-chairman and majority of directors, belong to the BRS party.

CESS is one among a few electric supply societies started on a pilot basis across the country by the National Rural Electrification Corporation in 1970. It is the first such society in 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 has grown to 3.46 lakh members. A total of 355 employees are working in the society.