Andhra Pradesh Government to Pay ₹4,497.89 Crore in Power True-Up Dues to DISCOMs
The Andhra Pradesh government will pay ₹4,497.89 crore in power sector true-up dues to three DISCOMs for FY2020-24, preventing consumer tariff hikes. APERC approved this amount after disallowing ₹8,274 crore from initial claims exceeding ₹14,200 crore. The state's commitment protects consumers from typical cost pass-through mechanisms while providing regulatory closure for the fourth control period.
*this image is generated using AI for illustrative purposes only.
The Andhra Pradesh government has undertaken to pay ₹4,497.89 crore in accumulated power sector true-up liabilities to the state's three distribution companies (DISCOMs), shielding consumers from potential electricity tariff increases. This decision follows the completion of the truing-up exercise for the fourth control period by the state electricity regulator.
APERC Completes Fourth Control Period Review
The Andhra Pradesh Electricity Regulatory Commission (APERC) issued an order on December 31, 2025, concluding the truing-up of the Retail Supply Business (RSB) for the period spanning FY 2019-20 to FY 2023-24. The regulatory body disposed of petitions filed by the state's three power distribution companies after considering public objections and submissions.
The approved net true-up amount represents a significant reduction from the DISCOMs' initial claims, which aggregated over ₹14,200 crore including carrying costs.
DISCOM-wise True-Up Allocation
The regulatory commission approved the distribution of the ₹4,497.89 crore liability across the three state DISCOMs based on their respective operational requirements:
| DISCOM | Approved Amount |
|---|---|
| APSPDCL | ₹1,551.69 crore |
| APCPDCL | ₹1,163.05 crore |
| APEPDCL | ₹1,783.15 crore |
| Total | ₹4,497.89 crore |
Regulatory Scrutiny and Disallowances
APERC conducted a thorough review of the DISCOMs' claims, resulting in substantial disallowances totaling ₹8,274 crore across various expense categories. The commission rejected claims related to:
- Bill discounting expenses
- Bad debt provisions
- Short-term operational loan costs
- Transmission cost limitations
- Corrections to non-tariff income calculations
The final approved figure reflects these disallowances as well as adjustments already accounted for in earlier commission orders, ensuring regulatory compliance and cost optimization.
Government Commitment Prevents Tariff Impact
APERC noted that the Government of Andhra Pradesh, through a letter dated December 31, 2025, formally committed to paying the approved true-up amount to the DISCOMs. The commission stated this commitment was made specifically to avoid hardship to end consumers and directed the DISCOMs to recover the approved sums from the state government rather than through tariff revisions.
True-up mechanisms typically allow utilities to recover differences between projected and actual costs incurred during a control period through subsequent tariff increases. However, with the state government assuming this liability, the approved amount will not be loaded onto consumer electricity tariffs.
Regulatory Closure and Future Implications
The order effectively closes the accounts for the fourth control period and provides regulatory clarity on past cost recoveries in Andhra Pradesh's power distribution sector. While the government has not outlined a specific timeline for payment, APERC's direction establishes an explicit recovery mechanism that prioritizes consumer protection over traditional cost pass-through methods.
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