In a significant decision, the Andhra Pradesh Electricity Regulatory Commission (APERC) has announced that there will be no hike in electricity tariffs for the year 2026–27. This move aims to support electricity consumers in Andhra Pradesh, including households, farmers, and small businesses, by keeping power costs stable. The Commission’s ruling, which follows thorough public consultations, also involves a review of DISCOMs’ performance for 2024–25, ensuring financial stability for consumers.
The approved revenue gap by APERC stands at Rs 15,790 crore, lower than the projected Rs 17,508 crore by DISCOMs. This decision, fully backed by the state government, prevents any increase in tariffs for all consumer categories and eliminates additional financial burdens through true-up charges. It also guarantees continued affordability and financial security for consumers, benefiting a wide range of sectors.
The order issued by APERC brings about various advantages, safeguarding around 1.13 crore domestic consumers from tariff hikes and ensuring that 22 lakh farmers receive uninterrupted free power supply. Additionally, approximately 22 lakh SC/ST and economically weaker households will benefit from free or subsidized electricity through the direct benefit transfer (DBT) scheme. Commercial tariffs have been reduced from Rs 12.25/unit to Rs 9.95/unit, benefiting about 2 lakh consumers, while the load limit for cottage industries has been doubled from 10 HP to 20 HP, assisting 18,000 small enterprises.
To stimulate industrial growth and align with evolving sectors, APERC has implemented significant structural changes, including the introduction of a new tariff subcategory for solar module manufacturing to encourage investments in clean energy. The Commission also reclassified water purification plants and printing presses as industrial units, rationalized tariffs for utilities like national highway street lighting, and provided special provisions for poultry and seasonal processing industries. Moreover, APERC rejected various proposals that would have increased the burden on consumers, such as changes in the time-of-day tariff structure and the removal of the green power category.
In a bid to enhance operational efficiency, APERC has directed DISCOMs to expedite the clearance of subsidy dues and government department arrears, adopt strategies to minimize private arrears, enhance electrical safety measures, and ensure compliance with national standards and The Revamped Distribution Sector Scheme targets.
