APERC Approves Retail Power Tariffs For FY27, Reviews DISCOM Performance And Revenue Gap In Andhra Pradesh

The Andhra Pradesh Electricity Regulatory Commission has issued a detailed order outlining the retail electricity tariffs for the financial year 2026–27, along with a review of the financial and operational performance of the state’s power distribution companies for 2024–25. The order covers three major DISCOMs — Southern Power Distribution Company of A.P. Ltd., A.P. Central Power Distribution Corporation Ltd., and Eastern Power Distribution Company of A.P. Ltd.

A key part of the order focuses on the Aggregate Revenue Requirement (ARR), which reflects the total funds needed by the DISCOMs to operate efficiently and supply electricity to consumers. For 2026–27, the utilities submitted their projections related to electricity sales, network losses, and power purchase requirements. After reviewing these submissions, the Commission approved cost components such as transmission charges, State Load Dispatch Centre (SLDC) fees, and overall distribution expenses. These approvals are important in determining the final tariffs to be charged to consumers.

The Commission also examined the revenue gap, which is the difference between the cost of supplying electricity and the revenue earned at existing tariff levels. This gap plays a crucial role in tariff decisions, as it indicates whether utilities require additional financial support or tariff adjustments to remain sustainable.

In addition to future projections, the order includes a detailed performance review of the DISCOMs for the financial year 2024–25. This review highlights operational efficiency, including billing performance and collection efficiency. It also looks at consumer-related aspects such as outstanding dues and arrears. The report assesses the reliability of electricity supply using standard technical indicators like SAIDI (System Average Interruption Duration Index) and SAIFI (System Average Interruption Frequency Index), which measure how often and how long power outages occur.

The Commission has also considered social welfare measures implemented by the state government. These include tariff subsidies and concessions provided to specific consumer categories, such as agricultural users and other beneficiaries eligible for free or subsidized electricity. These subsidies are an important part of ensuring affordable power access while maintaining the financial balance of the sector.

Another important aspect of the order is the “true-up” process for the year 2024–25. This process accounts for uncontrollable factors such as variations in fuel prices and changes in power purchase costs. By adjusting for the difference between approved estimates and actual expenses, the Commission ensures that DISCOMs are neither unfairly burdened nor overcompensated.

Finally, the order sets out the Retail Supply Tariff Schedule and Reference Tariff Schedule for 2026–27. It also defines cross-subsidy surcharges and additional surcharges applicable to consumers who opt to procure electricity from sources other than their local DISCOM.

Overall, the order aims to balance the financial stability of the power distribution sector with the need to provide reliable and affordable electricity to consumers across Andhra Pradesh.