AP Govt to Absorb Accumulated Power True-Up Liabilities
After detailed scrutiny, APERC approved a net true-up amount of Rs 4,497.89 crore for the three DISCOMs: APSPDCL: Rs 1,551.69 crore, APCPDCL: Rs 1,163.05 crore and APEPDCL: Rs 1,783.15 crore.
By : MD Ilyas
Update: 2026-01-02 16:41 GMT
Vijayawada: In a decisive move to protect households, farmers and businesses from a steep electricity tariff hike, the state government would absorb the power true-up liabilities that had accumulated during the YSRC term.
Chief Minister N. Chandrababu Naidu made it clear on Friday that there will be no more increase in power tariffs during the alliance government’s rule.
If possible, the government would reduce the existing tariffs, he said, adding, the power sector has been brought back on track through efficient management in recent months. The electricity regulatory commission, through an order, completed the truing-up of the retail supply business (RSB) for the fourth control period (FY 2019-20 to FY 2023-24).
These liabilities pertain to the “Jagan era”, during which costs were deferred and passed on as future true-up claims, it was claimed.
After detailed scrutiny, APERC approved a net true-up amount of Rs 4,497.89 crore for the three DISCOMs: APSPDCL: Rs 1,551.69 crore, APCPDCL: Rs 1,163.05 crore and APEPDCL: Rs 1,783.15 crore.
Recognising the serious impacts such a large retrospective burden would have had on end consumers, the state government formally undertook to pay the entire approved true-up amount on behalf of the DISCOMs, thereby avoiding any tariff shock.
The true-up relates to accumulated gaps in revenue and costs during FY 2019-20 to FY 2023-24, including power purchase costs, operational expenses, and carrying costs — largely a consequence of financial mismanagement and delayed decisions under the previous government.Instead of passing this urden on to consumers through higher tariffs, the government chose to bear fiscal responsibility and uphold public interest.
Energy minister Gottipati Ravi Kumar said this intervention reinforced the Naidu government’s commitment to stable and predictable power tariffs, consumer-first governance, restoring financial discipline in the power sector and undoing the damage caused by past mismanagement
The minister said, “By absorbing nearlyRs 4,500 crore of legacy liabilities, the government has ensured that families, farmers, MSMEs and industries are insulated from sudden electricity bill hikes, while simultaneously placing the power sector on a transparent and sustainable footing.