Amaravati, March 25 In a major relief for consumers across Andhra Pradesh, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved no increase in electricity tariffs for FY2026–27, reaffirming the state government's commitment to protecting households, farmers, and small businesses from rising power costs.
The commission's order also includes the true-up/down and performance review of Discoms for FY2024–25, following an extensive public consultation process.
Government Steps In to Shield Consumers
----------------------------------------------
While Discoms projected a revenue gap of Rs 17,508 crore, APERC approved a lower gap of Rs 15,790 crore, which will be fully supported by the Government of Andhra Pradesh.
This intervention ensures: no tariff hike across all consumer categories, no additional burden through true-up charges and continued affordability and financial stability for consumers.
Wide-ranging Benefits for Consumers
-----------------------------
The order delivers wide-ranging benefits across sectors: 1.13 crore domestic consumers protected from tariff increases, 22 lakh farmers to continue receiving free power supply, 22 lakh SC/ST and economically weaker households to receive free or subsidised electricity through DBT, Commercial tariffs reduced from Rs 12.25/unit to Rs 9.95/unit, benefiting 2 lakh consumers and cottage industry load limit doubled from 10 HP to 20 HP, aiding 18,000 small enterprises.
Reforms to Support Industry & Growth
------------------------------------------
To boost industrial activity and align with emerging sectors, APERC has introduced key structural changes, such as a new tariff subcategory for solar module manufacturing, promoting clean energy investments; reclassification of water purification plants and printing presses as industrial units; rationalisation of tariffs for utilities such as national highway street lighting, and special provisions for poultry and seasonal processing industries.
Pro-Consumer & Pro-Reform Approach
-----------------------------------------
The commission rejected several proposals that would have increased consumer burden, including changes in the Time-of-Day tariff structure, a shift to non-telescopic billing for certain consumers, and the removal of the green power category.
Strengthening Power Sector Efficiency
-----------------------------------------
APERC has issued critical directions to DISCOMs to improve operational efficiency. These directions include accelerated clearance of subsidy dues and government department arrears, implement strategies to minimise private arrears, enhance electrical safety measures, including public reporting systems via websites and WhatsApp, and
ensure compliance with national standards and RDSS targets.
Key Financial Snapshot
-------------------------
* Total ARR (3 DISCOMs): Rs 59,158 crore (approved)
* Total revenue: Rs 44,901 crore
* Net revenue gap (post adjustments): Rs15,790 crore
* Total subsidy support: Rs 15,790 crore
A Balanced Model: Growth with Protection
----------------------------------------------
This tariff order reflects Andhra Pradesh’s approach of balancing fiscal responsibility with social protection, ensuring affordable electricity for households, continued support to agriculture, incentives for industry, clean energy and strengthened financial health of DISCOMs.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.