In a major New Year relief for electricity consumers, the Andhra Pradesh government has decided to absorb the entire true-up burden of Rs 44.98 billion, ensuring there is no additional financial burden on power users across the state. The decision relates to the Fourth Control Period from 2019–20 to 2023–24 and follows a formal undertaking given by the government to the Andhra Pradesh Electricity Regulatory Commission, which issued its final orders late on Wednesday night.

The commission noted that the government’s intervention would prevent accumulated power sector costs from being passed on to domestic, agricultural and commercial consumers. Chief Minister N Chandrababu Naidu, who had earlier assured that electricity charges would not be increased after the coalition government assumed office, fulfilled that commitment by agreeing to bear the multi-billion-rupee liability. Officials said the move reflects the government’s resolve to ease pressure on households while maintaining the financial stability of the power sector.

According to APERC, the three power distribution companies—AP Southern Power Distribution Company, AP Central Power Distribution Company and AP Eastern Power Distribution Company—had initially sought approval to recover Rs 142.08 billion from consumers. This included Rs 100.58 billion as the true-up amount and Rs 41.50 billion towards carrying costs. After adjusting Rs 14.36 billion already accounted for in earlier orders, the discoms requested permission to collect Rs 127.72 billion from electricity users.

Following detailed scrutiny, APERC rejected claims worth Rs 82.74 billion, including the entire Rs 41.50 billion carrying cost, along with inadmissible expenses linked to transmission charges and other adjustments. The commission disallowed several components such as bill discounting costs, bad debts, short-term operational loans, excess transmission expenses, non-tariff income corrections and late payment surcharge calculations.

After examination, APERC approved a gross true-up of Rs 59.33 billion. Deducting the previously adjusted Rs 14.36 billion, the net true-up approved stood at Rs 44.98 billion. Under the approved allocation, APSPDCL will receive Rs 15.52 billion, APCPDCL Rs 11.63 billion and APEPDCL Rs 17.83 billion.

APERC recorded that the Government of Andhra Pradesh, through a letter dated December 31, undertook to bear the approved true-up burden in full to avoid hardship to consumers and honour its commitment not to raise electricity tariffs. The commission accordingly directed the discoms to claim the approved amounts from the state government rather than passing them on to end users, describing the order as a balanced and consumer-friendly approach that protects public interest while ensuring the financial viability of power utilities.