The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a new order making it compulsory for consumers and power generators to obtain a No Dues Certificate before applying for short-term open access in the state. The decision comes after the Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) informed the Commission about large unpaid dues of nearly ₹850 crore owed by some market participants.
According to APEPDCL, several entities with outstanding payments were still seeking access to the power transmission and distribution network. The utility requested the Commission to introduce stricter measures to ensure that defaulting entities do not continue using the network without clearing their dues.
While reviewing the matter, APERC examined the existing provisions under Regulation No. 2 of 2005 and Regulation No. 3 of 2024. The Commission noted that the State Load Dispatch Centre (SLDC) is already required to consult relevant distribution licensees before granting short-term open access. It also observed that nodal agencies have the authority to seek any information necessary for processing applications.
The Commission stated that allowing entities with significant unpaid dues to access the network could negatively affect the financial condition of distribution companies. It further noted that such financial burdens ultimately impact regular electricity consumers. As a result, APERC emphasized the importance of verifying whether applicants have any undisputed dues, cases of electricity theft, or unauthorized use of electricity before approving their requests.
Under the new directive, the Andhra Pradesh State Load Dispatch Centre (APSLDC) must obtain a No Dues Certificate from the concerned distribution licensee in addition to conducting technical feasibility checks before granting short-term open access. Distribution companies have been directed to submit the certificate within timelines specified by APSLDC. If a distribution licensee fails to provide the certificate within the prescribed period, it will automatically be considered that the applicant has no outstanding dues.
The order also introduces strict eligibility conditions. Open access applications will be rejected if the applicant has been declared insolvent or bankrupt. Applications will also be denied if there are undisputed outstanding dues exceeding two months of billing or if the applicant is facing pending and undisputed cases related to unauthorized electricity use or power theft.
At the same time, APERC has provided legal protection for applicants involved in ongoing judicial proceedings. Open access cannot be denied if the dues are covered by an order, stay, interim relief, or direction issued by a competent court, tribunal, or judicial authority.
The order, signed by the Commission Secretary, has come into effect immediately and is expected to strengthen financial discipline and accountability within Andhra Pradesh’s power sector.
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