Andhra Pradesh will see no electricity tariff hike for FY2026-27 as APERC approved stable rates. The government will bridge the revenue gap, ensuring relief to households, farmers, and businesses while supporting industry, clean energy initiatives, and DISCOM efficiency improvements
Published Date – 25 March 2026, 06:49 PM
Amaravati: In a major relief to consumers across Andhra Pradesh, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved no increase in electricity tariffs for FY2026-27, reaffirming the state government’s commitment to protecting households, farmers, and small businesses from rising power costs.
The commission’s order also includes the true-up/down and performance review of Discoms for FY2024-25, following an extensive public consultation process.
Government Steps In to Shield Consumers
While Discoms projected a revenue gap of Rs 17,508 crore, APERC approved a lower gap of Rs 15,790 crore, which will be fully supported by the Government of Andhra Pradesh.
This intervention ensures no tariff hike across all consumer categories, no additional burden through true-up charges, and continued affordability and financial stability for consumers.
Massive Consumer Benefits
The order delivers wide-ranging benefits across sectors: 1.13 crore domestic consumers protected from tariff increases, 22 lakh farmers to continue receiving free power supply, 22 lakh SC/ST and economically weaker households to receive free or subsidised electricity through DBT, commercial tariffs reduced from Rs 12.25/unit to Rs 9.95/unit, benefiting 2 lakh consumers, and cottage industry load limit doubled from 10 HP to 20 HP, aiding 18,000 small enterprises.
Reforms to Support Industry & Growth
To boost industrial activity and align with emerging sectors, APERC has introduced key structural changes, such as a new tariff subcategory for solar module manufacturing, promoting clean energy investments; reclassification of water purification plants and printing presses as industrial units; rationalisation of tariffs for utilities such as national highway street lighting; and special provisions for poultry and seasonal processing industries.
Pro-Consumer & Pro-Reform Approach
The commission rejected several proposals that would have increased consumer burden, including changes in the Time-of-Day tariff structure, a shift to non-telescopic billing for certain consumers, and the removal of the green power category.
Strengthening Power Sector Efficiency
APERC has issued critical directions to DISCOMs to improve operational efficiency. These directions include accelerated clearance of subsidy dues and government department arrears, implementing strategies to minimise private arrears, enhancing electrical safety measures, including public reporting systems via websites and WhatsApp, and ensuring compliance with national standards and RDSS targets.
Key Financial Snapshot
Total ARR (3 DISCOMs): Rs 59,158 crore (approved)
Total revenue: Rs 44,901 crore
Net revenue gap (post adjustments): Rs 15,790 crore
Total subsidy support: Rs 15,790 crore
A Balanced Model: Growth with Protection
This tariff order reflects Andhra Pradesh’s approach of balancing fiscal responsibility with social protection, ensuring affordable electricity for households, continued support to agriculture, incentives for industry, promotion of clean energy, and strengthened financial health of DISCOMs.
