Free power to farmers, no hike in household tariffs: Andhra to foot Rs 12,632.40 Cr subsidy bill

Amaravati: Chandrababu Naidu-led Andhra Pradesh government has made no changes in power tariff for retail users like households. This was the key promise made during the elections by the Chandrababu Naidu-led alliance.

Andhra Pradesh Electricity Regulatory Commission (APERC) issued electricity supply tariff order 2025-26 that made no changes in retail tariffs after the state government headed by N Chandrababu Naidu agreed to pick up Rs 12,632.40 crore subsidy tab.

The subsidy includes providing concessions/free power to specific consumer categories, including agricultural consumers, horticultural nurseries, washermen, aquaculture farmers, Scheduled Caste/Tribe households, etc, according to the APERC order.

In a major reform measure, Time of Day (ToD) tariffs are being specified for commercial and industrial connections above 10 kW of 50 paise per unit. This would result in effective utilization of power and enable the customers to take advantage of lower daytime power prices.

"For the first time, APERC determined energy despatches hourly for a more realistic assessment of short-term power requirements," it said. "To enhance demand-side management, ToD tariffs are fixed for LT (low tension) Industrial and Commercial consumers (previously, they were only for high tension or HT consumers)."

Also, from April 1, 2025, individuals constructing or reconstructing their homes will be billed at the domestic tariff instead of the commercial tariff. Standby tariffs now apply to all open-access users, not just Green Energy Open Access Users.

EV charging stations with a connected load of up to 150 KW will be supplied power at the LT voltage level. The tariff for EVs remains unchanged at Rs 6.70 per unit without demand charges. APERC approved a scheme to regularise additional loads for domestic consumers by paying only 50 percent of development charges. The scheme runs from March 1, 2025, to June 30, 2025.

Consumers can voluntarily declare additional loads via an online window and electricity distribution companies will regularise additional loads and collect 50 percent of development charges. State government-owned power generation companies have been permitted to procure imported coal and obtain coal through RSR (Rail-Sea-Rail) mode to ensure their whole generation capacity. This will lessen distribution companies' dependence on spot or current markets to meet their energy requirements.

Time of Day (ToD) tariffs are fixed to LT Industrial and Commercial consumers to bring more consumers in demand side management. At present, these ToD tariffs apply only to HT-category consumers.

At present, construction activity is classified as commercial for tariff billing. However, individuals seeking connections to construct their new homes or using the supply to reconstruct their houses by demolishing old ones are given respite. From April 1, 2025, they will be billed at the domestic tariff.

At present, Standby Tariffs apply only to Green Energy Open Access Consumers. However, these charges have now been made applicable to all open-access consumers. This prevents the open access consumers from paying huge penal charges for demand and energy if their supply source fails temporarily, the order said.

"To encourage the e-mobility ecosystem to mitigate climate change and facilitate higher penetration of e-vehicles, EV charging stations with a connected load of up to 150 KW will be extended power supply at the LT voltage level. The tariff for Electric Vehicles (EVs) remains unchanged at Rs 6.70 per unit without demand charges to promote their penetration," it added.