The refunds will be credited in equal monthly instalments over 12 months, from November 2025 to October 2026.
Published Sep 29, 2025 | 8:07 AM ⚊ Updated Sep 29, 2025 | 8:07 AM
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Synopsis: The Andhra Pradesh Electricity Regulatory Commission directed the state’s power distribution companies to refund ₹923.55 crore to consumers. The refund is part of the Fuel and Power Purchase Cost Adjustment. Since consumers had already paid ₹2,787 crore through a levy of 40 paise per unit during 2024-25, the excess collections will now be returned.
In a first-of-its-kind order, the Andhra Pradesh Electricity Regulatory Commission (APERC) directed the state’s power distribution companies (DISCOMs) to refund ₹923.55 crore to consumers.
The refund is part of the Fuel and Power Purchase Cost Adjustment (FPPCA) true-up for 2024-25, marking the first time since APERC’s inception in 1999 that consumers will receive a refund from DISCOMs.
The DISCOMS have been asked to refund the true down amounts in equal instalments spread over a period of 12 months. The true down charges refund will begin to reflect in the bills from November 2025 to 26 October 2026, following the True Up of Fuel and Power Purchase Cost Adjustment (FPPCA) order issued by APERC on 27 September 2025, APERC stated.
The directive, issued on 27 September, follows public objections and hearings on petitions filed by the three DISCOMs — Southern Power Distribution Company of Andhra Pradesh (APSPDCL), Central Power Distribution Company of Andhra Pradesh (APCPDCL), and Eastern Power Distribution Company of Andhra Pradesh (APEPDCL). While the DISCOMs had sought approval for ₹2,758.76 crore in cost variations, the commission admitted only ₹1,863.64 crore.
Since consumers had already paid ₹2,787 crore through a levy of 40 paise per unit during 2024-25, the excess collections will now be returned. The refunds will be credited in equal monthly instalments over 12 months, from November 2025 to October 2026.
The per-unit refund will vary slightly across DISCOMs: -13.28 paise per unit for APSPDCL, -13.43 paise for APCPDCL, and -13.12 paise for APEPDCL.
APERC attributed the refund to differences between approved and actual sales, dispatch, and transmission losses when compared to the projections in the Retail Supply Tariff (RST) Order. Against the 73,054 million units (MU) of sales projected, the DISCOMs reported only 69,680 MU. Energy dispatch also fell short — 77,570 MU against the 81,025 MU approved — while system losses were slightly higher at 10.17 perent compared to the 9.84 percent projected.
The commission also examined power purchase costs, transmission charges, and scheduling expenses. It finally admitted ₹44,624 crore against the ₹45,476 crore claimed by DISCOMs, though still far higher than the ₹34,517 crore originally approved in the RST Order. Per-unit costs rose accordingly — from ₹5.27/kWh to ₹5.74 for APSPDCL, ₹5.78 for APCPDCL, and ₹5.75 for APEPDCL.
A key reason for the reduction was the disallowance of ₹646.49 crore in claims, along with ₹205.69 crore cut due to dispatch restrictions. After further adjustments, including a negative carrying cost of ₹42.94 crore, the commission determined the final refundable amount. Interestingly, APEPDCL reported a surplus position, accounting for the largest share of refunds at ₹1,435.89 crore, while APSPDCL and APCPDCL recorded positive variances.
(Edited by Muhammed Fazil.)
