Electricity bills in AP to drop by 13 paise/unit from November

In a landmark ruling, the Andhra Pradesh Electricity Regulatory Commission (APERC) has directed the state’s power distribution companies (DISCOMs) to refund ₹923.55 crore to consumers, citing excess collections under the Fuel and Power Purchase Cost Adjustment (FPPCA) mechanism for FY2024-25. This is the first time since its establishment in 1999 that APERC has mandated a refund instead of an additional levy. The refund, to be disbursed in 12 equal monthly installments between November 2025 and October 2026, will amount to a reduction of 13 paise per unit of electricity consumed.

The order follows APERC’s scrutiny of DISCOMs’ true-up claims. While the distribution companies had sought approval for ₹2,758.76 crore under FPPCA, the commission approved only ₹1,863.64 crore, disallowing ₹895.12 crore of the claimed amount. During FY25, DISCOMs had already collected about ₹2,787 crore by charging consumers 40 paise per unit. After adjusting this figure, APERC calculated the net refund liability at ₹923.55 crore. The regulatory body also reviewed sales volumes, power purchase costs, energy dispatch and transmission & distribution losses before arriving at its decision.

The ruling immediately set off a political storm. The Telugu Desam Party (TDP), led by Chief Minister N. Chandrababu Naidu, welcomed the development, claiming it reflected a “turnaround” in the power sector under his leadership and pointed to ₹895 crore in savings during FY25. However, opposition leaders dismissed the government’s claims. Andhra Pradesh Congress Committee (APCC) chief Y. S. Sharmila accused Naidu of misleading the public by boasting about minor relief measures. She argued that the NDA coalition, in its first 15 months of rule, had imposed a true-up burden of ₹15,780 crore on the people, calling the current refund “shameful and misleading.”

The YSR Congress Party (YSRCP) has also criticized the government’s power tariff policies, recalling earlier impositions of true-up charges amounting to ₹6,072 crore and ₹9,412 crore within just six months of 2024. The party had even threatened statewide protests against what it described as anti-people electricity policies. Critics argue that while the current refund offers some relief to households, it does little to offset the larger burden of rising power tariffs and accumulated true-up liabilities.

For consumers, however, the immediate impact will be visible in electricity bills starting November, with the per-unit rate cut providing much-needed relief at a time of rising household expenses. Yet, the financial burden on the state’s DISCOMs remains unresolved, as they continue to grapple with revenue shortfalls and massive accumulated dues. Energy experts say that while the APERC decision is a positive step for consumer rights, the deeper structural issues in Andhra Pradesh’s power sector including high purchase costs, poor recovery rates, and mounting debts still await long-term solutions.