AP maintains zero electricity tariff hike for FY 2026-27

Andhra Pradesh Electricity Regulatory Commission has approved no increase in electricity tariffs for the financial year 2026-27, reaffirming the state government’s commitment to protecting households, farmers, and small businesses from rising power costs. The tariff order also includes the true-up/down and performance review of DISCOMs for FY 2024-25, following an extensive public consultation process.

Despite distribution companies projecting a revenue gap of ₹17,508 crore, the Commission approved a lower gap of ₹15,790 crore, which will be fully bridged by the state government. This intervention ensures that consumers will not face any additional burden, either through tariff hikes or true-up charges, thereby maintaining affordability and financial stability across sectors.

The decision brings widespread benefits. Around 1.13 crore domestic consumers will be protected from tariff increases, while 22 lakh farmers will continue to receive free electricity supply. Additionally, nearly 22 lakh SC/ST and economically weaker households will benefit from subsidised or free power through the Direct Benefit Transfer (DBT) mechanism. In a notable move to support businesses, the commercial tariff has been reduced from ₹12.25 per unit to ₹9.95 per unit, benefiting approximately two lakh consumers. Further, the load limit for cottage industries has been doubled from 10 HP to 20 HP, offering a boost to nearly 18,000 small enterprises.

To support industrial growth and align with emerging sectors, APERC introduced several structural reforms. These include the creation of a new tariff category for solar module manufacturing, 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 extended to sectors like poultry and seasonal processing industries.

Importantly, the Commission rejected multiple proposals that could have increased the burden on consumers. These include suggested changes to the Time-of-Day tariff structure, a shift to non-telescopic billing for certain consumers, and the removal of the green power category. At the same time, APERC has directed DISCOMs to improve operational efficiency.