No power tariff hike in Andhra; APERC gives relief to households, farmers, businesses

Amaravati: Andhra Pradesh Electricity Regulatory Commission (APERC) has decided not to increase electricity tariffs for 2026–27.

The decision reaffirms the state’s commitment to shielding households, farmers, and small businesses from rising energy costs.

The decision, announced on Wednesday, ensures that consumers across all categories will not face any additional burden, even as the state’s power distribution companies (DISCOMs) continue to grapple with financial gaps.

Revenue gap to be fully supported by government

As part of its annual review, APERC conducted a true-up/down and performance assessment of DISCOMs for 2024–25 following an extensive public consultation process.

While DISCOMs projected a revenue gap of ₹17,508 crore, the Commission approved a lower gap of ₹15,790 crore. The state government has committed to fully bridging this gap, ensuring financial stability without passing the burden onto consumers.

Major relief for domestic and agricultural consumers

The order brings wide-ranging benefits across sectors:

1.13 crore domestic consumers protected from tariff hikes

22 lakh farmers to continue receiving free power supply

22 lakh SC/ST and economically weaker households to benefit from free or subsidised electricity through Direct Benefit Transfer (DBT)

Commercial tariffs reduced

In a notable move to support businesses, APERC has reduced commercial electricity tariffs from ₹12.25 per unit to ₹9.95 per unit, benefiting nearly 2 lakh consumers across the state.

Boost for small industries

To encourage small-scale industries and entrepreneurship:

Cottage industry load limit increased from 10 HP to 20 HP

Around 18,000 small enterprises expected to benefit

Push for industrial growth and clean energy

The Commission introduced several structural reforms to promote industrial growth and future-ready sectors:

New tariff subcategory for solar module manufacturing

Reclassification of water purification plants and printing presses as industrial units

Rationalised tariffs for national highway street lighting

Special provisions for poultry and seasonal processing industries

Proposals increasing consumer burden rejected

APERC rejected several proposals that could have led to higher charges, including:

Changes to time-of-day tariff structure

Shift to non-telescopic billing for select consumers

Removal of the green power category

Directions to improve DISCOM efficiency

The Commission has also issued key directives to DISCOMs to enhance operational efficiency:

Speed up clearance of subsidy dues and government arrears

Reduce private arrears through targeted strategies

Improve electrical safety measures, including public reporting systems via websites and WhatsApp

Ensure compliance with national standards and Revamped Distribution Sector Scheme (RDSS) targets

Balanced approach to consumer relief and sector stability

Officials said the decision reflects a balanced approach, protecting consumers from tariff hikes while ensuring the financial sustainability of the power sector.