In a historic turnaround, the Andhra Pradesh power sector, which has long been debt-ridden, has achieved a remarkable milestone this year by saving as much as Rs. 895.12 crore during the last financial year. Noting these landmark savings in the Fuel and Power Purchase Cost Adjustment (FPPCA), the Andhra Pradesh discoms would be refunding this money to all electricity consumers in the state starting November this year.
The AP Electricity Regulatory Commission (APERC) on September 27 informed that an expenditure of Rs.1,863.64 crore was incurred under FPPCA, against budgeted Rs. 2,758.76 crore or expected earlier for FY 2024–25. This has resulted in savings/reduction of Rs. 895.12 crore.
Earlier, the APERC had levied an FPPCA charge of 40 paise per unit on consumers for FY 2024–25. Out of this, there has now been a return of Rs. 895 crore, which the AP Distribution utilities will be credited back to consumers. As per computation arrived at by the APERC, a refund of approximately 13 paise per unit will be credited to consumers in equal monthly instalments, and it shall be automatically adjusted in their final bill.
Refunds for consumption months April 2024 to March 2025 will be credited from November 2025 to October 2026 in monthly cycles. The discount will be applicable on the power consumption bill of the October month. Refund in bill is a Historic first since 1999 power sector reforms
It is also pertinent to note that, for the first time since electricity sector reforms began in 1999, AP power distribution utilities will refund FPPCA amounts to consumers in monthly instalments. This marks a milestone in pro-consumer governance and financial prudence in the power sector.
According to officials, the mode of Refund will be as follows:
Refund Amount of about 13 paise per unit; DISCOM-wise per-unit rates are: APSPDCL: Rs. 0.1328/kWh; APCPDCL: Rs. 0.1343/kWh; APEPDCL: Rs. 0.1312/kWh (as per APERC’s order) will be refunded monthly. The refund will automatically be credited as a separate negative FPPCA line item; no action required from consumers.