In a significant move to shield households from a sudden spike in electricity bills, the Andhra Pradesh government has agreed to take on a massive ₹4,500 crore financial burden on behalf of the state's power distribution companies. The decision, announced on Friday by the Andhra Pradesh Electricity Regulatory Commission (APERC), effectively prevents "true-up" dues from being passed on to the public, a move specifically intended to avoid what officials are calling a "tariff shock."
These "true-up" dues represent the gap between the actual cost of power and the revenue collected. According to the APERC, this specific debt was accumulated during the previous YSRCP administration between 2019 and 2024. While these costs are typically recovered directly from consumers, the current government has formally undertaken the responsibility to clear the arrears for all three major DISCOMs. The breakdown of the payout includes ₹1,552 crore for the Southern Power Distribution Company, ₹1,783 crore for the Eastern sector, and ₹1,163 crore for the Central region.
State officials have criticised the previous regime for the pile-up, alleging that the dues were deferred and left as a "future claim" due to financial mismanagement and delayed decision-making. By stepping in now, the state claims it is cleaning up a retrospective burden that would have otherwise caused significant hardship for end-users. Following the government’s commitment, the APERC has directed the DISCOMs to claim the full amount from the state treasury rather than factoring it into consumer billing cycles.
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