AP holds power rates, boosts industry with lower commercial tariffs

In a major relief to 1.13 crore consumers, including farmers, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved no increase in power tariffs for FY 2026–27, reaffirming the State’s focus on affordability.

While DISCOMs projected a revenue gap of Rs17,508 crore, APERC pegged it lower at Rs15,790 crore, which will be fully funded by the State Government, as assured by Chief Minister N. Chandrababu Naidu.

The order protects 1.13 crore domestic consumers from tariff hikes and ensures free power for 22 lakh farmers. Additionally, 22 lakh SC/ST and economically weaker households will continue to receive free or subsidised electricity through DBT.

Commercial consumers also gain, with tariffs reduced from Rs12.25 to Rs9.95 per unit, benefiting around 2 lakh users. The load limit for cottage industries has been doubled from 10 HP to 20 HP, aiding 18,000 small enterprises.

Financially, APERC approved a total ARR of Rs59,158 crore against revenues of Rs44,901 crore, leaving a net gap of Rs15,790 crore, fully covered by subsidies.