TSERC accepts State govt’s zero bills proposal

The State Government had directed the TSERC to make provisions to enable the DISCOMs to issue zero bills to eligible beneficiaries of Gruha Jyothi within the Retail Supply Tariff Schedule.

Hyderabad: The Telangana State Electricity Regulatory Commission (TSERC) has accepted the proposal of the State government to issue ‘zero bills’ under the Gruha Jyothi scheme being implemented by it from March 1.

In an interim order on Saturday, TSERC chairman T Sriranga Rao said since the scheme was designed to benefit the public at large the commission had accepted the directions issued by the State government with regard to issuance of zero bills.

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Further, as per Section 65 of the Electricity Act, 2003, as committed by the State government in its letter dated March 14, 2024, had to release the subsidy to the distribution licensees in advance for implementation of “Gruha Jyothi Scheme”, he said, adding that the distribution licensees had been directed to ensure timely and advance release of subsidy amounts for beneficiaries under the scheme from the State government and issue zero bills accordingly.

The commission directed the distribution companies Southern Power Distribution Company of Telangana Limited (TSSPDCL), Northern Power Distribution Company of Telangana Limited (TSNPDCL) and Cooperative Electricity Supply Society, Sircilla (CESS) to file a report with the Commission along with tariff proposals.

The State Government had directed the TSERC to make provisions to enable the DISCOMs to issue zero bills to eligible beneficiaries of Gruha Jyothi within the Retail Supply Tariff Schedule.

Under the provisions of the Electricity Act, 2003, the State government can extend subsidies to provide relief to the power consumers. The subsidy could be either front loaded or back loaded. In the scheme of front loading, the State government has to extend subsidy even before the billing is done by the distribution licensee by undertaking supply in its area of operation.

On the other hand, back loading of subsidies would mean that the consumer, who avails power supply, pays the bill at the first instance and later is subsidized by the State government and gets refunded.

In the matter of zero bill, the electricity bill cannot be a zero unless the government has released to the distribution company, the electricity charges payable by the consumers in advance, the commission explained.