Telangana Data Center Power Tariff 2026: Complete Breakdown

Telangana has been one of India's most attractive data center markets, with Hyderabad hosting investments from AWS, Microsoft, Google, CtrlS, and Yotta. However, February 2026 presents a critical cost disruption: the suspension of the night-time ToD rebate has pushed operating costs significantly higher.

CRITICAL ALERT (Feb 2026): TSERC has suspended the night ToD rebate (-₹1.50/kVAh) for December 2025 through March 2026. Night-time energy costs have increased by 24.4% (from ₹6.15 to ₹7.65/kVAh). Standard rebate expected to resume April 2026.

Quick Reference: Telangana HT Industrial Tariff (FY 2025-26)

Component	Rate	Notes
Base Energy Rate (11 kV)	₹7.65/kVAh	Apparent energy billing
Base Energy Rate (33 kV)	₹7.15/kVAh	Discount for higher voltage
Base Energy Rate (132 kV+)	₹6.65/kVAh	Heavy industries
Demand Charge	₹500/kVA/month	All voltage levels
Customer Charges	₹2,000 - ₹5,000/month	₹2K (11kV), ₹3.5K (33kV), ₹5K (132kV)
FAC	Negligible	For Feb 2026
Electricity Duty	5%
CSS (Open Access)	₹1.82/kWh	High floor for OA adoption

The "Winter Shock": Night Rebate Suspension

In a significant deviation from the standard RST Order, TSERC approved an amendment to suspend the night-time ToD rebate for December 2025 through March 2026. The rationale:

Thermal Backing Down Costs: During winter nights, demand crashes. Discoms must back down thermal stations to technical minimums, incurring compensation costs while still paying for must-run renewables.
Revenue Gap: The rebate was causing a revenue leak during months when the system did not need load shifting (night demand is naturally low in winter).

Time-of-Day (ToD) Structure (February 2026)

Time Slot	Hours	Standard (Apr-Nov)	Feb 2026 (Amended)	Effective Rate (Feb '26)
Morning Peak	06:00 - 10:00	+₹1.00	+₹1.00	₹8.65/kVAh
Day Normal	10:00 - 18:00	Base Rate	Base Rate	₹7.65/kVAh
Evening Peak	18:00 - 22:00	+₹1.00	+₹1.00	₹8.65/kVAh
Night	22:00 - 06:00	-₹1.50	₹0 (SUSPENDED)	₹7.65/kVAh

 Impact Calculation: For a continuous process facility, the loss of the ₹1.50 rebate
    for 8 hours/day represents a massive cost escalation:

Previous night cost: ₹7.65 - ₹1.50 = ₹6.15/kVAh

Feb 2026 night cost: ₹7.65/kVAh

Increase: 24.4% for night-time energy costs

kVAh Billing Impact

Like Maharashtra, Telangana uses kVAh (Apparent Energy) billing. Industries with poor power factor correction are double-penalized — once by the physics of kVAh (higher billing units) and again by the high energy rate.

Power Factor	kVAh per kWh	Effective Cost per kWh	Premium
1.00	1.000	₹7.65	-
0.98	1.020	₹7.81	+2.0%
0.95	1.053	₹8.05	+5.3%
0.90	1.111	₹8.50	+11.1%

Why Hyperscalers Choose Hyderabad

Despite the winter tariff disruption, Hyderabad's long-term fundamentals remain strong:

AWS: Multiple availability zones in Hyderabad region
Microsoft Azure: Hyderabad data center region
Google Cloud: Planned Hyderabad region
CtrlS: Largest tier-4 data center in Asia (Hyderabad)
Yotta: 20 MW+ facility in Hyderabad

State Incentive Programs

Power tariff subsidy: Additional rebates for anchor investments (>50 MW)
Single-window clearance: Expedited land allocation for DC projects
Stamp duty exemption: Reduced registration costs
Capital subsidy: 25% subsidy on fixed capital investment (capped)
Employment incentive: Reimbursement for local hiring

Voltage-Based Optimization

Telangana offers meaningful discounts for higher voltage connections:

Voltage Level	Energy Rate	Savings vs 11 kV	Annual Savings (1 MW load)
11 kV	₹7.65/kVAh	-	-
33 kV	₹7.15/kVAh	₹0.50/kVAh	~₹43 Lakhs
132 kV+	₹6.65/kVAh	₹1.00/kVAh	~₹86 Lakhs

 Infrastructure Decision: For facilities above 10 MW, investing in 33 kV or 132 kV
    infrastructure pays for itself rapidly through the ₹0.50-1.00/kVAh discount.

Operational Recommendations

Budget for higher opex Q4 FY26: The rebate removal is structural for winter and may recur in future years as renewable penetration increases
Negotiate 33 kV connections: The ₹0.50/kVAh discount over 11 kV is significant for large facilities
Maintain high PF: With kVAh billing, every 0.01 PF improvement reduces costs
Plan for April relief: Night rebate should resume Apr 2026, restoring cost advantage

Try Our Calculator

Use our ToD Power Tariff Calculator to estimate your Telangana data center electricity costs. The calculator reflects the current February 2026 rates including the suspended night rebate.

Compare Other States

Maharashtra Tariff Guide — kVAh billing, aggressive night rebate, ₹600/kVA demand
Tamil Nadu Tariff Guide — Dual peak windows, 25% surcharge, 90% demand ratchet
Karnataka Tariff Guide — Lowest base rate at ₹6.60/kWh, symmetrical ToD

Sources

TSERC Retail Supply Tariff Order FY 2025-26
TSERC ToD Amendment (Winter Rebate Suspension, Dec 2025)
TGSPDCL HT-I(A) Industrial Schedule
Telangana Data Center Policy 2024
Telangana Electricity Duty Rules