The state government has initiated steps to enable seamless supply of electricity to selected categories of consumers, especially farmers who have free electricity supply.
The state government has approved the establishment of a sole distribution company responsible for the retail sale of electricity to the specific categories of consumers it supports. The development paves the way for a third Discom as announced earlier by Chief Minister A. Revanth Reddy. The new Discom will supply 18 and 15 districts at present, in addition to the Northern and Southern Power Distribution Companies.
The government said it was committed to providing free and subsidized electricity to specific categories such as agriculture. The financial position of the existing discotheques has deteriorated over a period of time due to the difference between the average billing rate and the average cost of services.
The precarious financial situation of Discoms severely limits their ability to secure funding for development initiatives. It also limited their participation in critical infrastructure programs such as the revamped distribution sector system. As a result, Discoms have faced challenges in implementing major system upgrades required to ensure reliable and quality power to consumers across the state.
To address these concerns and improve the supply position, the government has decided to set up a third disco responsible for addressing retail electricity sales for specific categories.
Published – 17 Dec 2025 21:32 IST
