State govt blocks power tariff hike for FY 2026–27

Vijayawada: The rewill be no tariff hike for any category of electricity consumers in Andhra Pradesh for Financial Year (FY) 2026–27, after the state government stepped in to bridge a revenue gap of Rs 1,718 crore for power distribution companies, the Andhra Pradesh Electricity Regulatory Commission (APERC) said on Wednesday.

APERC secretary P Krishna said that although the three power distribution companies (discoms) had proposed a total revenue gap of Rs 17,508.17 crore, the commission approved Rs 15,790.57 crore. The state government has committed to covering the remaining approved gap to ease the burden on consumers.

“The Government of Andhra Pradesh is committed to bridging the estimated revenue gap for the fiscal year 2026–27 and disbursing the approved amounts to the discoms,” Krishna said in an official release.

The move is aimed at preventing hardship for consumers and ensuring that no additional financial burden is imposed through higher electricity charges. As a result, there will also be no levy of true-up charges for FY 2024–25.

Around 1.13 crore domestic consumers will benefit from the decision, while nearly 22 lakh agricultural consumers will continue to receive free power supply.

The three distribution companies — AP Southern Power Distribution Company Ltd (APSPDCL), AP Central Power Distribution Corporation Ltd (APCPDCL) and AP Eastern Power Distribution Company Ltd (APEPDCL) — had submitted varying revenue gap estimates. APSPDCL proposed Rs 8,238 crore, of which Rs 7,552 crore was approved; APCPDCL proposed Rs 4,097 crore, with Rs 4,465 crore approved; and APEPDCL proposed Rs 5,173 crore, of which Rs 3,773 crore was cleared.

The remaining gap to be bridged by the state government stands at Rs 686 crore for APSPDCL, Rs 368 crore for APCPDCL and Rs 1,399 crore for APEPDCL, totaling Rs 1,718 crore.