Andhra Pradesh Announces Zero Power Tariff Hike For FY 2026-27

The Andhra Pradesh Electricity Regulatory Commission (APERC) has announced that there will be no increase in power tariffs for any category of consumers in the state for the financial year 2026–27, offering relief to households, farmers, and businesses.APERC Chairman P. Venkata Ramana Reddy made the announcement while releasing the Retail Supply Tariff Order, along with true-up and performance review orders for 2024–25. He stated that the decision was taken after a detailed review of power distribution companies’ (DISCOMs) proposals, operational costs, and feedback from stakeholders, with an emphasis on maintaining transparency and protecting consumer interests.

Despite projections by DISCOMs indicating a significant revenue gap of over ₹17,500 crore, the Commission approved a lower gap of approximately ₹15,790 crore after scrutiny. The state government has committed to bridging this shortfall, ensuring that the financial burden is not passed on to consumers.The decision is expected to benefit around 1.13 crore domestic consumers, who will continue to pay existing electricity rates. In addition, nearly 22 lakh agricultural consumers will continue to receive free power supply, while several economically weaker sections will benefit from subsidised or free electricity through targeted schemes.

In a move aimed at supporting businesses, the Commission has reduced tariffs for commercial users, bringing rates down significantly per unit and benefiting close to 2 lakh consumers. It has also expanded concessions for small and cottage industries by increasing the eligible load limit, thereby extending benefits to thousands of units across the state.

Also Read: Magnitude 5 Earthquake Strikes Northwestern Nepal, Shakes Surrounding Areas

The tariff order also introduces structural changes, including the creation of a separate category for solar module manufacturing to encourage renewable energy growth. At the same time, key proposals from DISCOMs—such as revisions to time-of-day tariffs and certain billing mechanisms—were rejected to safeguard consumer interests.Officials said the decision reflects a broader policy approach focused on balancing financial sustainability in the power sector with affordability for consumers. By absorbing the revenue gap and maintaining stable tariffs, the state aims to support economic activity while shielding citizens from rising utility costs.

Also Read: US Troops Mass Near Iran as Ground Invasion Fears Grow Despite Trump's Talk of Diplomacy