Andhra Pradesh Discoms FPPCA True-Up 2024-25 Finalized, Consumer Charges Adjusted

The Andhra Pradesh Electricity Regulatory Commission (APERC) issued a key common order, finalizing the True-up of the Fuel and Power Purchase Cost Adjustment (FPPCA) surcharge for the fiscal year 2024-25. This order follows petitions filed jointly by the state’s three distribution companies, Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL), Andhra Pradesh Central Power Distribution Corporation Limited (APCPDCL), and Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL). The order marks the completion of the regulatory process to reconcile the costs these DISCOMs incurred while purchasing power and fuel throughout the year. The true-up process is carried out under the Fourth Amendment (Regulation No. 2 of 2023) to APERC Regulation No. 4 of 2005 and ensures that only verified and legitimate cost differences are passed on to consumers.

The FPPCA mechanism allows power distribution companies to adjust their tariffs to reflect fluctuations in fuel prices and the cost of purchased electricity in the open market. The true-up process ensures that these adjustments are fair, transparent, and based on actual data submitted by the DISCOMs. According to the records, the total approved power purchase cost for the three utilities in FY 2024-25 was approximately ₹9,111.10 Crore. To meet the state’s electricity demand, the DISCOMs purchased a total of 17,282.42 Million Units (MU) of power during the year.

Power purchase costs varied significantly monthly, highlighting the importance of the FPPCA mechanism. The weighted average cost per unit of electricity purchased ranged from around ₹5.35 to ₹6.69 per unit over the year. These fluctuations were influenced by multiple factors, including seasonal demand changes, availability of generation sources, and market conditions. The true-up process reviewed these variations carefully to ensure that the costs incurred were reasonable and justified.

APERC carried out a detailed examination of all records submitted by the DISCOMs under O.P. No. 37, 38, and 39 of 2025. This analysis involved verifying the quantity of power purchased and ensuring that the price paid for electricity was competitive. The Commission’s role was to confirm the prudence of the costs before allowing them to be recovered through consumer tariffs. By scrutinizing the data, APERC ensured that consumers would only bear legitimate costs and not pay for any excess or unjustified expenses.

The issuance of this final common order sets the approved figures for the reconciled FPPCA for the fiscal year. The difference between the revenue already collected from consumers through the FPPCA surcharge and the approved true cost will determine the final impact on customers. If the amount collected during the year was less than the approved cost, a surcharge will be added to future bills to recover the shortfall. On the other hand, if the DISCOMs collected more than the approved amount, the excess will be refunded to consumers.

The order provides regulatory certainty and transparency, completing the reconciliation process for FY 2024-25. Consumers can now be assured that the charges on their electricity bills reflect the actual cost of fuel and power purchased by the DISCOMs, and any over-collection will be returned. This move strengthens the accountability of the state’s power distribution companies and ensures fair treatment for all electricity users across Andhra Pradesh. The FPPCA true-up process remains an essential tool for balancing the interests of the utilities and the consumers while maintaining stability in electricity pricing.

The entire process reflects the Commission’s commitment to transparency, ensuring that power purchase costs are efficiently monitored, justified, and fairly adjusted in the electricity tariffs for the state.