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Andhra Pradesh Freezes Power Tariffs for 2026-27, Offers Major Consumer Relief

The Andhra Pradesh Electricity Regulatory Commission has approved no increase in electricity tariffs for the 2026-27 financial year, providing major relief to consumers. The state government will cover the approved revenue gap for distribution companies, preventing any hike or additional true-up charges. Key benefits include continued free power for farmers, subsidized electricity for weaker households via DBT, and a significant reduction in commercial tariffs. The order also introduces structural changes to promote industrial activity and clean energy while rejecting several proposals that would have increased consumer burden.

Key Points: No Electricity Tariff Hike in Andhra Pradesh for 2026-27

  • No tariff hike for all consumers
  • Commercial power rates reduced
  • Free power for 22 lakh farmers
  • Subsidies for SC/ST & weaker households
  • DISCOM revenue gap covered by state
2 min read

No electricity tariff hike in Andhra Pradesh for 2026-27

APERC approves no power tariff increase for 2026-27, protecting domestic users, farmers, and businesses. Commercial rates cut, subsidies continue.

"This intervention ensures no tariff hike across all consumer categories - Official Statement"

Amaravati, March 25

In a major relief to electricity consumers across Andhra Pradesh, the Andhra Pradesh Electricity Regulatory Commission, on Wednesday, approved no increase in electricity tariffs for 2026-27.

The state government said that the APERC's decision reaffirms its 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 2024-25, following an extensive public consultation process.

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 state government.

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

According to an official statement, the order delivers wide-ranging benefits across sectors.

This has protected 1.13 crore domestic consumers from tariff increases while 22 lakh farmers will continue receiving free power supply.

As many as 22 lakh SC/ST and economically weaker households will receive free or subsidised electricity through direct benefit transfer (DBT) scheme.

Commercial tariffs have been reduced from Rs 12.25/unit to Rs 9.95/unit, benefiting about 2 lakh consumers.

Cottage industry load limit has been doubled from 10 HP to 20 HP, aiding 18,000 small enterprises.

To boost industrial activity and align with emerging sectors, APERC has introduced key structural changes, including 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.

The Commission rejected several proposals that would have increased consumer burden, including changes in time-of-day tariff structure, shift to non-telescopic billing for certain consumers and removal of green power category.

APERC has issued critical directions to DISCOMs to improve operational efficiency: They have been told to accelerate clearance of subsidy dues and government department arrears, implement strategies to minimise private arrears, enhance electrical safety measures, including public reporting systems via websites and WhatsApp and ensure compliance with national standards and The Revamped Distribution Sector Scheme targets.

- IANS

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Reader Comments

R
Rohit P
While no tariff hike is great news, I hope the DISCOMs actually improve their efficiency as directed. The power cuts in my area are still frequent. Reducing the revenue gap is one thing, but we need reliable 24/7 supply.
S
Suresh O
As a small shop owner, the reduction in commercial tariff from Rs 12.25 to Rs 9.95 is a big help. Every rupee saved counts. Doubling the load limit for cottage industries is also a smart move to support local entrepreneurs. Bahut accha hai!
M
Michael C
The focus on promoting solar manufacturing and clean energy is forward-thinking. Attracting investment in that sector can create jobs and build a sustainable future. The structural changes seem well-considered.
A
Anjali F
Protecting over 1 crore domestic consumers and providing free power to farmers is a massive social welfare measure. The DBT for SC/ST and weaker households is also important to ensure the subsidy reaches the right people. Hope other states learn from this.
K
Karthik V
The state government is taking on a Rs 15,790 crore gap. That's a huge financial burden. While it helps us now, I'm concerned about the long-term fiscal health. Where is this money coming from? Taxes elsewhere? We need transparency.

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