The Telangana State Electricity Regulatory Commission (TSERC) has released smart grid regulations to improve the efficiency of its power generation, transmission and distribution (T&D) networks. The scope of the regulation includes the development and implementation of smart grid programmes, measuring their cost-effectiveness, and monitoring and reporting on their progress. As per the regulations, every T&D licensee is required to establish a smart grid cell within three months of the release of the current notification. The purpose of the smart grid cell will be to carry out baseline studies, build a database, formulate smart grid programmes, design and develop smart grid projects, acquire the necessary approvals and implement programmes. T&D agencies in each area of the state must submit an integrated multi-year smart grid plan, a multi-year tariff petition and an annual revenue requirement petition. The TSERC also made provisions for the formation of an R&D team. T&D licensees are also expected to identify net incremental costs in various stages of development, establish key performance indicators to evaluate the functioning of the grid and reserve 1 per cent of the project cost for consumer awareness and capacity building.