Amaravati: Debt-ridden APERC saves ₹895.12 Cr; to refund money to power consumers

Amaravati: Debt-ridden Andhra Pradesh Electricity Regulatory Commission (APERC) has saved ₹895.12 crore during the last financial year.

The money was saved due to the fuel and power purchase cost adjustment (FPPCA). Andhra Pradesh discoms would be refunding this money to all electricity consumers in the state starting November this year.

The AP Electricity Regulatory Commission (APERC) on September 27 informed that an expenditure of ₹1,863.64 crore was incurred under FPPCA, against the budgeted ₹2,758.76 crore or expected earlier for FY 2024–25. This has resulted in savings/reduction of ₹895.12 crore.

Earlier, the APERC had levied an FPPCA charge of 40 paise per unit on consumers for FY 2024–25. Out of this, there has now been a return of ₹895 crore, which the AP Distribution utilities will be credited back to consumers.

As per the computation, a refund of approximately 13 paise per unit will be credited to consumers in equal monthly instalments, and it shall be automatically adjusted in their final bill. Refunds for consumption months April 2024 to March 2025 will be credited from November 2025 to October 2026 in monthly cycles. The discount will apply to the power consumption bill for October.

Refund in bill is a Historic first: since 1999, power sector reforms

It is also pertinent to note that, for the first time since electricity sector reforms began in 1999, AP power distribution utilities will refund FPPCA amounts to consumers in monthly instalments. This marks a milestone in pro-consumer governance and financial prudence in the power sector.

Mode of Refund:

Refund Amount of about 13 paise per unit; DISCOM-wise per-unit rates are: APSPDCL: ₹0.1328/kWh; APCPDCL: ₹0.1343/kWh; APEPDCL: ₹0.1312/kWh (as per APERC’s order) will be refunded monthly. The refund will automatically be credited as a separate negative FPPCA line item; no action required from consumers.