The Andhra Pradesh Electricity Regulatory Commission (APERC) has mandated state power distribution companies (DISCOMs) to refund Rs 923.55 crore to consumers, stemming from a Fuel and Power Purchase Cost Adjustment (FPPCA) True-Up order for fiscal year 2025. This directive addresses over-collection from the previous year, providing relief amid ongoing debates over electricity pricing in the state.

APERC's decision, detailed in a recent press release, calculates the refund after netting out collections against actual fuel and power purchase expenses, marking a significant adjustment in a sector burdened by volatile global energy markets and rising demand. The order underscores the regulator's role in balancing utility recoveries with consumer protection, especially as Andhra Pradesh grapples with its energy transition goals under the national push for renewables.

Under the order, DISCOMs—primarily the Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) and Eastern Power Distribution Company Limited (APEPDCL)—must disburse the amount in 12 equal monthly instalments beginning November 2025, equating to Rs 0.13 per unit of electricity consumed. During FY 2024-25, utilities had levied Rs 2,787 crore at 40 paise per unit monthly to cover escalating costs from coal imports, transmission losses, and grid purchases.

APERC's true-up mechanism, conducted annually to reconcile provisional charges with audited figures, revealed a surplus, prompting the refund to prevent undue financial strain on households and industries. This follows similar adjustments in neighbouring states like Telangana, where FPPCA surcharges have sparked protests, highlighting the broader challenge of subsidising affordable power in India's federal energy framework.

The ruling has ignited political crossfire, with the ruling Telugu Desam Party (TDP) hailing it as evidence of a sectoral "turnaround" under Chief Minister N Chandrababu Naidu. In a Monday statement, TDP claimed Rs 895 crore in savings through efficient procurement and reduced transmission and distribution (T&D) losses, crediting Naidu's investor-friendly policies for stabilising tariffs.

Naidu, who assumed office in June 2024 after unseating the YSR Congress Party (YSRCP), has prioritised power reforms, including solar park developments and smart metering rollouts to curb theft and inefficiencies that plagued the previous regime. Supporters argue these measures averted steeper hikes, aligning with the state's Atmanirbhar Andhra vision.

Also Read: North Korea and China Forge Stronger Alliance to Resist US Influence

Opposition voices, led by Andhra Pradesh Congress Committee (APCC) chief YS Sharmila, dismissed the refund as a "shameless and misleading" ploy, accusing Naidu of exaggerating minor gains while imposing a cumulative Rs 15,780 crore true-up burden over 15 months of NDA rule. Sharmila, daughter of late Congress president YS Rajasekhara Reddy, lambasted the government for "boasting about small things" amid persistent high tariffs averaging Rs 7-9 per unit for domestic users—among India's steepest.

She urged independent audits and greater transparency in DISCOM finances, echoing YSRCP critiques of opaque procurement deals. As instalments roll out, the move could ease monthly bills for over 1.5 crore consumers but risks fuelling pre-election rhetoric ahead of local polls, testing Naidu's narrative of fiscal prudence against accusations of populist overreach.

Also Read: Army Commander Reviews Troop Preparedness in Ladakh Amid Rising Security Concerns