The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued an important order on March 25, 2026, setting the retail electricity tariffs for the financial year 2026-27. This order will impact three major power distribution companies in the state—APSPDCL, APCPDCL, and APEPDCL—and provides a clear direction for electricity pricing and supply.

A key part of the order is the review of the performance of these DISCOMs for the year 2024-25. The Commission examined important factors such as revenue collection, electricity sales, and efficiency levels. It also compared the actual performance with earlier approved estimates. For example, it reviewed the gap between projected and actual electricity sales and analyzed distribution losses. These evaluations help in making “true-up” or “true-down” adjustments, which ensure that any difference between estimated and actual costs is balanced in future tariffs.

The order also focuses on power purchase planning for 2026-27. The Commission studied how much electricity will be needed and from which sources it will be procured. It looked into both fixed and variable costs of power generation to make sure that expenses are kept under control. This step is important because power purchase cost is one of the biggest components of electricity tariffs.

Renewable energy is another important area covered in the order. The Commission reviewed how the DISCOMs plan to meet their Renewable Purchase Obligations (RPO) and Renewable Carbon Obligations (RCO). These targets are necessary to promote clean energy and reduce dependence on conventional power sources.

The report also explains the Aggregate Revenue Requirement (ARR), which includes all costs that DISCOMs need to recover. These costs cover transmission charges, load dispatch expenses, and distribution network costs. It also includes interest payments on consumer deposits and pension-related expenses. By comparing the total required revenue with expected earnings, the Commission calculates the revenue gap. This gap helps decide whether tariffs need to be increased or adjusted.

In addition, the order provides detailed tariff schedules for different consumer categories. It includes both the Reference Tariff Schedule and the Retail Supply Tariff Schedule, along with rules and conditions. There are also provisions related to cross-subsidy and additional surcharges.

The Commission has also considered public feedback before finalizing the order. Various suggestions and objections from consumers and stakeholders were reviewed carefully. This approach ensures that the final decision balances the financial needs of power companies with consumer interests.

Overall, the tariff order aims to ensure stable electricity supply, financial health of DISCOMs, and fair pricing for consumers in Andhra Pradesh.