For a Change, Babu Brings Down Power Bills!

For several years, electricity consumers in Andhra Pradesh saw their monthly power bills rise due to additional charges such as True Up and FPPCA (Fuel and Power Purchase Cost Adjustment). These charges were introduced to help power distribution companies recover the difference between their estimated and actual power purchase costs.

The previous YSRCP government frequently defended these recoveries as necessary to keep the power sector financially stable. However, consumers often complained that repeated True Up and FPPCA charges made electricity bills more expensive.

The situation has begun to change under the present NDA government. Instead of collecting additional money through True Up adjustments, consumers have started receiving relief through True Down. A True Down is applied when power utilities have collected more than the actual approved cost, allowing the excess amount to be returned to consumers through lower bills.

Last year, Andhra Pradesh consumers received a reduction of about 13 paise per unit through a True Down adjustment. Now, another Rs. 940 crore True Down benefit is expected to be passed on to consumers, once again reducing bills by an average of around 13 paise per unit.

At the same time, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved no increase in retail electricity tariffs for FY 2026-27. The state government has agreed to bridge the revenue gap of power distribution companies instead of passing the burden on to consumers. Around 1.13 crore domestic consumers will continue to pay the existing tariff, while agricultural consumers and beneficiaries under subsidised schemes will also continue to receive support.

Another major relief is that many of the older True Up recoveries linked to previous years are gradually coming to an end. According to government representatives, only one legacy recovery remains, and it is expected to conclude by December 2026, after which consumers may see simpler electricity bills with fewer past-cost recoveries.

The government has also stated that there will be no electricity tariff hike for the next three years, while efforts are being made to reduce power purchase costs and improve the financial health of the power sector. Energy Minister Gottipati Ravi Kumar has said the government’s objective is to protect consumers without compromising the stability of DISCOMs.

The reduction in bills may appear modest, but it marks a shift in direction. Instead of additional recoveries from consumers, the current approach is focused on returning excess collections where applicable and keeping retail tariffs unchanged. If the government continues to reduce power purchase costs and avoids future tariff hikes, consumers could see more meaningful relief in the coming years.