APERC unveils retail supply tariff order for 2025-26: No tariff hike

Tirupati: The Andhra Pradesh Electricity Regulatory Commission (APERC) has released the Retail Supply Tariff (RST) order for the financial year 2025-26, ensuring that there will be no tariff hike for any consumer.

This was stated by APERC chairman (incharge) Thakur Rama Singh at a media meet here on Thursday. Addressing the media, Singh stated that APERC has approved an Aggregate Revenue Requirement (ARR) of Rs.57,544.17 crore for the three power distribution companies (discoms). This, he said, was Rs.1,324.35 crore less than what was proposed by the discoms.

The total approved revenue stands at Rs.44,323.30 crore, slightly higher than the discoms' filings. The revenue gap for the year is Rs.12,632.40 crore, which is Rs.2,050.86 crore lower than the discoms’ request.

Singh said the state government was committed to fully bridging this gap, ensuring that no category of consumers would face an increase in tariffs.

The chairman said the government has continued its commitment to social welfare by maintaining subsidies and free power to various consumer groups, including agricultural consumers, horticultural nurseries, washermen, aquaculture farmers, and Scheduled Caste and Scheduled Tribe households.

Singh announced that, for the first time, APERC has determined energy dispatches on an hourly basis instead of the previous daily assessments. This new approach would provide a more realistic evaluation of short-term power requirements and help optimize energy procurement and distribution.

To further strengthen the power sector, state-owned GENCOs are now permitted to procure imported coal and obtain coal through the Rail-cum-Sea-Rail (RSR) mode. This, Singh said, would ensure that Gencos operate at full generation capacity and reduce discoms' dependence on market purchases.

A key change in this year’s tariff order is the extension of Time of Day (ToD) tariffs to low-tension (LT) industrial and commercial consumers. Singh said ToD tariffs, which were previously applicable only to high-tension (HT) consumers, would now encourage better demand-side management in LT sectors as well.

Another reform, the chairman said, is the change in tariffs for domestic construction activities. From April 1, individuals constructing or reconstructing their homes would be charged at the domestic tariff instead of the commercial tariff, thereby reducing costs for homeowners.

Standby tariffs, which were earlier applicable only to Green Energy Open Access Users, have now been extended to all open-access consumers. This decision, Singh said, would ensure a more uniform and fair cost structure for all consumers utilising open access for their power requirements.

Meanwhile, the tariff for electric vehicle (EV) charging stations remains unchanged at Rs.6.70 per unit, with no demand charges. Singh said EV charging stations with a connected load of up to 150kW will continue to receive power at LT voltage levels, supporting the growth of electric mobility in the state.

A special scheme has been introduced to allow domestic consumers to regularise additional loads at reduced costs. From March 1, 2025 to June 30, 2025, consumers can voluntarily declare their additional loads and get them regularised by paying only 50 per cent of the development charges. This scheme is a one-time opportunity and will not be extended beyond the given period.

APERC member Venkatarama Reddy, secretary P Krishna, APSPDCL CMD Santhosha Rao, CMD(FAC) AKV Bhaskar, APEPDCL CMD Prudhvi Tej were among those present.