Hyderabad, December 18 – In a bid to address the financial woes of the existing power distribution companies in the state, the Telangana government has ordered the formation of a third discom (distribution company). According to Government Order (GO) number 44, the new entity will commence operations on April 1, 2026, and will be responsible for managing approximately 29 lakh (2.9 million) power connections.
The newly formed company will primarily focus on handling free power supply and other electricity schemes based on government subsidies. This move is a response to the weakened financial condition of the existing discoms due to a widening gap between the Average Billing Rate (ABR) and the Average Cost of Service (ACoS). This gap has hindered their ability to raise funds for development works and restricted their participation in key infrastructure programs.
The new power distribution company is scheduled to begin operations from April 1, 2026, with a mandate to ensure efficient power supply and manage subsidized electricity schemes effectively. The decision aims to address the financial struggles faced by the existing discoms, ensuring a stable and reliable power supply for the residents of Telangana.
