With effect from march 1, the telangana State electricity Regulatory Commission (TSERC) has approved the State government's plan to issue "zero bills" as part of the Gruha jyothi initiative. TSERC Chairman T Sriranga Rao stated in an interim ruling on saturday that the commission had approved the State government's directives to issue zero bills because the plan was intended to benefit the general population.
 

Moreover, he stated that the distribution licensees had been instructed to guarantee the prompt and advance release of subsidy amounts for beneficiaries under the scheme from the State government and issue zero bills accordingly. This was by Section 65 of the electricity Act, 2003, as committed by the State government in its letter dated march 14, 2024.
 
The distribution companies Cooperative electricity Supply Society, sircilla (CESS), Northern Power Distribution Company of telangana Limited (TSNPDCL), and Southern Power Distribution Company of telangana Limited (TSSPDCL) were instructed by the commission to submit a report and tariff proposals to the commission.


Within the Retail Supply Tariff Schedule, the State government had instructed the TSERC to create measures that would allow the DISCOMs to bill eligible Gruha jyothi recipients with zero dollars.
 
To alleviate the situation faced by electricity users, the State government may offer subsidies by the electricity Act of 2003. The subsidy can be front-loaded or back-loaded. By taking over supply in its area of operation, the State government is required to extend the subsidy under the front-loading plan even before the distribution licensee bills.
 

Conversely, back loading of subsidies would entail that the customer who uses the power supply initially pays the bill and then receives a refund and subsidy from the State government.
 
Regarding the zero bill issue, the commission clarified that the power bill cannot be zero until the government has delivered to the distribution firm the electricity charges that customers must pay in advance.
 
 


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