Will Electricity Consumers in Andhra Pradesh Receive a Rs 895 Crore Refund?
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Synopsis
In a groundbreaking decision, the Andhra Pradesh Electricity Regulatory Commission has ordered a refund of Rs 895 crore to consumers, marking a significant achievement in pro-consumer governance. This initiative, reflecting fiscal prudence, will benefit consumers starting November 2025, making it a historic moment in the state's power sector.
Key Takeaways
- Refund Amount: Rs 895 crore to consumers.
- Monthly Credit: Approximately 13 paise per unit.
- Refund Period: November 2025 to October 2026.
- Significant Savings: Rs 895.12 crore saved in the power sector.
- Historic Development: First refund since 1999 reforms.
Amaravati, Sep 29 (NationPress) The Andhra Pradesh Electricity Regulatory Commission (APERC) has mandated a refund totaling Rs 895 crore to electricity consumers across the state.
Power distribution companies will initiate a refund of around 13 paise per unit to consumers, distributed in monthly installments. This amount will be automatically reflected in the electricity bills, requiring no action from consumers.
Refunds for the consumption period from April 2024 to March 2025 will commence in November 2025 and will continue until October 2026 in monthly cycles. This discount will be applicable to the power consumption bill for October, as announced by the government on Monday.
The state government has reported a significant achievement in the power sector, which has been burdened with debt for an extended period, claiming savings of approximately Rs 895.12 crore during the 2024-25 fiscal year.
These noteworthy savings in the Fuel and Power Purchase Cost Adjustment (FPPCA) have prompted the Andhra Pradesh discoms to refund this amount to all electricity consumers starting in November of this year.
According to APERC, an expenditure of Rs 1,863.64 crore was incurred under the FPPCA, contrasting with the previously budgeted Rs 2,758.76 crore for 2024-25. This has led to a reduction of Rs 895.12 crore.
Previously, the APERC implemented an FPPCA charge of 40 paise per unit for consumers for the 2024-25 period. Out of this, Rs 895 crore will now be returned to consumers through the distribution utilities.
The government has characterized this refund as a historic event. This marks the first instance since the initiation of electricity sector reforms in 1999 that power distribution companies will reimburse FPPCA amounts to consumers in monthly installments. This represents a significant achievement in consumer-friendly governance and fiscal responsibility in the power sector.
As outlined in the APERC directive, the discom-specific refund amounts are 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).
Point of View
Setting a precedent that other states might follow. This development is welcomed by consumers who have long faced high electricity costs.
NationPress
29/09/2025
Frequently Asked Questions
What is the total refund amount for consumers?
The total refund amount mandated is Rs 895 crore.
How will the refund be credited to consumers?
The refund will be credited as approximately 13 paise per unit in monthly installments, automatically adjusted in electricity bills.
When will the refunds start being credited?
Refunds for consumption from April 2024 to March 2025 will begin in November 2025.
Is any action required from consumers to receive the refund?
No action is required from consumers; the refund will be automatically applied to their bills.
What does this refund signify for the power sector?
This refund signifies a historic achievement in pro-consumer governance and financial prudence in the power sector.
