TERC Defends Tariff Decision, But Remains Silent on Reducing Power Costs Through Efficiency and Loss Control

By Our Correspondent

Agartala, August 10, 2026

The Tripura Electricity Regulatory Commission (TERC) has issued a statement defending its decision on the electricity tariff for the financial year 2026–27, amid growing public concern over unusually high electricity bills and the burden of increased power charges on consumers.

However, while the Commission has explained the legal and procedural basis of its tariff order, questions remain over whether adequate attention has been given to the root causes of the rising cost of electricity and measures that could reduce the cost of power supply for consumers.

In its statement, TERC said that reports had appeared in various newspapers and media outlets claiming that Tripura residents were facing difficulties because of the increase in electricity tariffs. The Commission also referred to allegations that it had misused its authority to increase the tariff. TERC stressed that it is an independent statutory and quasi-judicial body constituted under the Electricity Act, 2003, and that tariff decisions are taken collectively by the Commission rather than by any individual member or official.

According to TERC, the Tripura State Electricity Corporation Limited (TSECL) had initially projected a revenue gap of Rs. 1,709.04 crore for 2026–27. The Commission, after examining the tariff petition, supporting documents, audited accounts, legal provisions and stakeholder submissions, ultimately approved a revenue gap of Rs. 479.24 crore.

The Commission said recovering the entire amount in a single financial year would have required an average tariff increase of around 42.82 per cent, which could have imposed a significant economic burden on consumers. To avoid such a “tariff shock”, TERC said it rationalised fixed and energy charges while keeping the tariff structure broadly aligned with prevailing rates in other parts of the country, particularly northeastern states.

The Commission also pointed out that only Rs. 117.77 crore of the earlier revenue gap has been considered for partial recovery in 2026–27, in addition to the existing tariff structure.

Questions Over the Root Cause of Rising Electricity Costs

Despite the detailed explanation of the tariff-setting procedure, an important question remains: why should consumers continue to bear higher electricity costs when there may be scope to reduce the cost of power distribution through greater operational efficiency?

The TERC statement does not specifically explain whether a comprehensive assessment has been undertaken to reduce TSECL's overall cost of electricity supply through measures such as improving operational efficiency, preventing electricity theft, reducing transmission and distribution losses, improving billing efficiency and strengthening revenue collection.

These issues are particularly important for consumers who are already questioning unusually high electricity bills. Rather than merely explaining how the tariff was calculated, consumers are likely to expect the regulator and the power utility to also demonstrate what concrete steps are being taken to bring down the underlying cost of electricity.

TERC said it has issued several directions to TSECL to protect consumer interests and improve the quality of electricity supply and related services.

The Commission directed TSECL to ensure reliable and uninterrupted power supply and maintain supply quality in accordance with applicable Standards of Performance. It also directed the corporation to properly inform consumers about smart-meter-related facilities and address billing problems arising from smart-meter installation on a priority basis.

The Commission further ordered TSECL to establish and fully operationalise a three-tier consumer grievance redressal mechanism. Senior officials at the electrical circle, divisional and sub-divisional levels have been directed to remain available to the public for two hours on at least two working days every week to hear consumer complaints.

TERC has also instructed TSECL to organise “Nigam Apnar Dware” programmes at suitable locations to directly interact with consumers and create awareness about smart meters, tariff structures and billing-related issues.

While TERC has strongly defended the legality and transparency of its tariff-setting process, the latest statement does not appear to directly address the broader public demand for cheaper electricity through improved efficiency within the power distribution system.

The key questions therefore remain: Can TSECL substantially reduce transmission and distribution losses? What is the current scale of electricity theft and what measurable steps are being taken to stop it? Can improved billing and collection efficiency reduce the revenue gap? And can better management of the corporation ultimately bring down the cost at which electricity is supplied to consumers?

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