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.

Next Story
Infrastructure Urban

9th India–Myanmar Joint Trade Committee Meeting Held in Nay Pyi Taw

The ninth meeting of the India–Myanmar Joint Trade Committee (JTC) was held in Nay Pyi Taw, Myanmar, with a focus on strengthening bilateral trade and deepening economic cooperation. The meeting was co-chaired by U Minn Minn, Deputy Minister, Ministry of Commerce of the Republic of the Union of Myanmar, and Nitin Kumar Yadav, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India.Representatives from relevant ministries and stakeholder departments from both countries participated in the discussions. The meeting covered a broad range of issues aim..

Next Story
Infrastructure Urban

DGCA Launches Digital Pilot Licence Services for ATPL

The Directorate General of Civil Aviation (DGCA) has launched Electronic Personnel Licence (EPL) services for the Airline Transport Pilot Licence (ATPL), marking a significant step in the regulator’s ongoing digital transformation of aviation licensing in India. The service was inaugurated at an event held at the DGCA headquarters.Inaugurating the EPL ATPL service, Director General of Civil Aviation Faiz Ahmed Kidwai said the initiative represents a major advancement in strengthening India’s civil aviation regulatory framework through secure, modern and future-ready digital systems. He con..

Next Story
Infrastructure Urban

Cabinet Extends Atal Pension Yojana and Support Till 2030–31

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030–31, along with the extension of government funding support for promotional and developmental activities and gap funding to ensure the scheme’s long-term sustainability.Under the approved framework, APY will continue to receive government support aimed at expanding its reach among unorganised and low-income workers. This includes funding for awareness campaigns, capacity-building initiatives and other developmental activities to strengthen ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App