Andhra Govt Absorbs Rs 45 Billion Power True-Up Costs
ECONOMY & POLICY

Andhra Govt Absorbs Rs 45 Billion Power True-Up Costs

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.

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.

Related Stories

Gold Stories

Next Story
Real Estate

L&T Wins Mega Order for India’s Largest NVIDIA B300 AI Factory

Larsen & Toubro (L&T), through Vyoma.AI’s AI infrastructure subsidiary LTN Compute, has secured a mega order to develop what the company describes as India’s largest single-cluster AI infrastructure facility. The NVIDIA B300 AI Factory will support US-based AI cloud company Together AI’s platform for large-scale inference, fine-tuning and training workloads.The integrated AI Factory will be hosted at Vyoma.AI’s Chennai data centre campus and will have a capacity of 10,000 NVIDIA B300 GPUs. The platform will combine hyperscale data centre infrastructure, accelerated computing, h..

Next Story
Infrastructure Urban

Autodesk Elevates Nikhil Bagalkotkar to Lead AEC in India, SAARC

Autodesk has elevated Nikhil Bagalkotkar as Head – Architecture, Engineering and Construction (AEC), India and SAARC, with immediate effect.In his new role, Bagalkotkar will lead Autodesk's AEC business strategy across the region and drive adoption of the company's Design and Make platform. He will also focus on promoting digital design and construction technologies to help customers accelerate innovation and deliver more sustainable and resilient infrastructure.Bagalkotkar will be responsible for expanding Autodesk's AEC business, strengthening customer and partner engagement, and accelerat..

Next Story
Real Estate

Listed Developers' Pre-Sales Seen Rising 22.3 Per Cent in FY27

India's leading listed residential developers are expected to sustain strong sales momentum in FY27, with combined pre-sales of 11 major players projected to rise 22.3 per cent year-on-year, according to an analysis by ANAROCK Research & Advisory.Combined pre-sales of the developers are estimated to increase from Rs 1.49 trillion in FY26 to Rs 1.82 lakh crore in FY27. ANAROCK attributed the growth to sustained end-user demand, new project launches and strong execution despite higher property prices, construction costs and global uncertainties.Dr Prashant Thakur, Executive Director and Head..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement