For years, electricity consumers in Andhra Pradesh faced rising monthly power bills due to additional levies such as True Up and FPPCA (Fuel and Power Purchase Cost Adjustment). These charges were introduced to help power distribution companies recover the gap between estimated and actual power procurement costs. While the previous YSRCP government maintained that such recoveries were essential to keep the power sector financially viable, many consumers complained that the repeated adjustments placed an extra burden on household budgets.
The trend, however, appears to be changing under the current NDA government. Instead of imposing additional recoveries through True Up, consumers are now beginning to benefit from True Down adjustments. A True Down is applied when utilities collect more than the actual approved expenditure, allowing the excess amount to be returned to consumers in the form of lower electricity bills.
Last year, consumers received a True Down benefit of around 13 paise per unit, reducing their monthly bills. Now, another ₹940 crore True Down has been approved for distribution, which is expected to once again lower tariffs by an average of nearly 13 paise per unit, providing further relief to consumers.
Adding to the positive developments, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved no increase in retail electricity tariffs for the financial year 2026-27. Instead of passing the financial burden to consumers, the state government has decided to bridge the revenue gap of power distribution companies through budgetary support. As a result, nearly 1.13 crore domestic consumers will continue to pay the existing tariff, while agricultural consumers and beneficiaries of subsidised power schemes will also continue to receive government support.
Another significant development is the gradual completion of legacy True Up recoveries from previous years. According to the government, only one such recovery remains, and it is expected to conclude by December 2026. Once that process is completed, electricity bills are likely to become simpler, with fewer adjustments linked to past power purchase costs.
The government has also reiterated that there will be no electricity tariff hike for the next three years, while simultaneously focusing on reducing power procurement costs and improving the financial health of DISCOMs. Energy Minister Gottipati Ravi Kumar has stated that the government’s priority is to safeguard consumers while ensuring the long-term sustainability of the power distribution sector.
Although the immediate reduction in electricity bills may be modest, it reflects a notable policy shift. Rather than recovering additional costs from consumers, the current approach aims to refund excess collections wherever applicable and maintain stable retail tariffs. If power purchase costs continue to decline and tariff hikes are avoided, consumers could benefit from even greater relief in the years ahead.
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