No Power Tariff Hike in Andhra Pradesh for 2026–27, Says APERC

Amaravati, March 2026 : In a significant relief for electricity consumers, the Andhra Pradesh Electricity Regulatory Commission on Wednesday approved no increase in power tariffs for the financial year 2026–27, reaffirming the state government’s commitment to shielding households, farmers, and small businesses from rising costs.

The Commission’s order follows an extensive public consultation process and includes the true-up/down exercise and performance review of DISCOMs for 2024–25. While power distribution companies had projected a revenue gap of ₹17,508 crore, APERC approved a reduced gap of ₹15,790 crore. The state government has committed to fully bridging this gap, ensuring that consumers are not burdened with additional charges.

Officials said the decision guarantees that there will be no tariff hike across any consumer category, no imposition of additional true-up charges, and continued affordability of electricity. The move is expected to provide financial stability to millions of consumers across the state.

According to an official statement, the order benefits a wide cross-section of society. Around 1.13 crore domestic consumers have been protected from any increase in electricity tariffs, while nearly 22 lakh farmers will continue to receive free power supply.

Additionally, about 22 lakh Scheduled Caste, Scheduled Tribe, and economically weaker households will benefit from free or subsidised electricity through the Direct Benefit Transfer (DBT) scheme. This measure is aimed at ensuring equitable access to power while supporting vulnerable sections.

In a boost to the business community, commercial electricity tariffs have been reduced from ₹12.25 per unit to ₹9.95 per unit, benefiting approximately 2 lakh consumers. Small-scale industries have also received support, with the load limit for cottage industries being doubled from 10 horsepower to 20 horsepower, a move expected to aid around 18,000 enterprises.

To promote industrial growth and align with emerging sectors, APERC has introduced several structural reforms. These include the creation of a new tariff subcategory for solar module manufacturing to encourage clean energy investments, reclassification of water purification plants and printing presses as industrial units, and rationalisation of tariffs for utilities such as national highway street lighting. Special provisions have also been introduced for poultry and seasonal processing industries.

Importantly, the Commission rejected several proposals that could have increased the burden on consumers. These include changes to the time-of-day tariff structure, a shift to non-telescopic billing for certain categories, and the removal of the green power category.

APERC has also issued key directives to DISCOMs to improve efficiency and service delivery. These include accelerating the clearance of subsidy dues and government arrears, reducing private outstanding payments, strengthening electrical safety measures, and enhancing public reporting systems through digital platforms like websites and WhatsApp.

The Commission further directed DISCOMs to comply with national standards and targets under the Revamped Distribution Sector Scheme, ensuring long-term sustainability and improved performance of the power sector in Andhra Pradesh.