The Andhra Pradesh Electricity Regulatory Commission (APERC) has released its Retail Supply Tariff Order (RSTO) for FY 2025-26 with significant updates in electricity pricing, subsidies, and regulations. Here are the key takeaways:
1. Tariff and Revenue Adjustments
- Aggregate Revenue Requirement (ARR) Approval:
- APERC approved a total ARR of ₹57,544.17 Cr, slightly lower than the ₹58,868.52 Cr filed by DISCOMs.
- This resulted in a revenue gap reduction of ₹1,324.35 Cr.
- Revenue Gap Covered by the Government:
- The State Government fully covered the revenue gap of ₹12,632.40 Cr, thereby preventing tariff hikes across all consumer categories.
2. Government Subsidies and Free Power Schemes
The Andhra Pradesh government continues to provide substantial subsidies to different consumer categories:
- Free Power to Agricultural Consumers – ₹9,730.39 Cr
- Tariff Subsidy for Domestic Users – ₹2,248.97 Cr
- Support for Aquaculture & Animal Husbandry – ₹1,224.97 Cr
- Tariff Concessions to Various Consumer Segments – ₹1,525.53 Cr
3. Key Policy Decisions
- Hourly Energy Dispatch:
- For the first time, the Commission has determined energy dispatches on an hourly basis to better estimate short-term power requirements.
- GENCOs Permitted to Procure Imported Coal:
- To ensure full-capacity generation, state-owned GENCOs can now procure imported coal and use Rail-Sea-Rail (RSR) mode for transportation.
- Time-of-Day (ToD) Tariffs Extended to LT Consumers:
- LT Industrial and Commercial consumers will now be part of the ToD tariff system to encourage demand-side management.
- Revised Tariff for Home Construction:
- From April 1, 2025, new home construction and house reconstruction will be billed at domestic tariff instead of the commercial category.
- Expansion of Standby Tariffs:
- Open Access (OA) consumers will now also be covered under standby tariffs to avoid excessive penalty charges.
4. EV Charging Infrastructure & Green Energy Initiatives
- EV Charging Stations (up to 150 kW) to Get LT Power Supply
- EV Tariffs Remain Unchanged at ₹6.70 per Unit (No Demand Charges)
- Aimed at accelerating e-mobility adoption and mitigating climate change.
5. One-Time Load Regularization Scheme (March 1 – June 30, 2025)
To encourage transparency in electricity consumption, domestic consumers can voluntarily declare additional loads and pay only 50% of development charges. This is a one-time opportunity and will not be extended.
Conclusion
The APERC Retail Supply Tariff Order for FY 2025-26 brings significant consumer-friendly measures, stable tariffs, and government-backed subsidies while also promoting renewable energy and EV adoption. These changes reflect a balanced approach to maintaining financial sustainability in the power sector while supporting consumer welfare and industrial growth.
Stay informed and plan your energy consumption wisely! ⚡🔋
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