Electricity consumers in Andhra Pradesh to get Rs 895 crore refund

Amaravati, Sep 29 The Andhra Pradesh Electricity Regulatory Commission (APERC) has ordered a refund of Rs 895 crore to electricity consumers in the state.

Power distribution companies will credit a refund of approximately 13 paise per unit to consumers in equal monthly instalments. It will be automatically adjusted in the bills, and there is no action required from the consumers.

Refunds for consumption months April 2024 to March 2025 will be credited from November 2025 to October 2026 in monthly cycles. The discount will apply to the power consumption bill for October, the government said on Monday.

The state government has claimed that the power sector, which has long been debt-ridden, has achieved a remarkable milestone this year by saving as much as Rs 895.12 crore during 2024-25.

Noting these landmark savings in the Fuel and Power Purchase Cost Adjustment (FPPCA), the Andhra Pradesh discoms would be refunding this money to all electricity consumers in the state starting in November this year.

The APERC noted that an expenditure of Rs 1,863.64 crore was incurred under FPPCA, against the budgeted Rs 2,758.76 crore or expected earlier for 2024-25. This has resulted in savings/reduction of Rs 895.12 crore.

Earlier, the APERC had levied an FPPCA charge of 40 paise per unit on consumers for 2024-25. Out of this, there has now been a return of Rs 895 crore, which the distribution utilities will be credited back to consumers.

The government called the refund of the bill a historic development. This is the first time since electricity sector reforms began in 1999 that power distribution utilities will refund FPPCA amounts to consumers in monthly instalments. This marks a milestone in pro-consumer governance and financial prudence in the power sector, it said.

As per the order of APERC, discom-wise refund amount is Rs 0.1328/kWh for Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL), Rs 0.1343/kWh for Andhra Pradesh Central Power Distribution Company Limited and Rs 0.1312/kWh for Andhra Pradesh Eastern Power Distribution Company (APEPDCL).

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