30-09-2025 12:00:00 AM
The per-unit refunds:
APSPDCL: Rs 0.1328/kWh
APCPDCL: Rs 0.1343/kWh
APEPDCL: Rs 0.1312/kWh
In a first since the power sector reforms began in 1999, Andhra Pradesh electricity consumers will receive a direct refund on their monthly bills, thanks to Rs 895.12 crore in savings recorded in FY 2024–25.
According to an order issued by the Andhra Pradesh Electricity Regulatory Commission (APERC) on September 27, actual expenditure on Fuel and Power Purchase Cost Adjustment (FPPCA) was Rs 1,863.64 crore—significantly lower than the budgeted Rs 2,758.76 crore. This surplus will now be credited back to all electricity consumers.
Starting November 2025 through October 2026, refunds will be applied as a negative FPPCA charge on bills, requiring no action from consumers.
This is the first time in 26 years that FPPCA charges are being reversed. Traditionally, these have added cost burdens due to rising power procurement expenses. Officials say the refund reflects a turnaround in financial discipline and power purchase efficiency.
Energy Minister Gottipati Ravikumar hailed the move as historic. “For decades, the power sector in AP has been marked by debt and subsidy overload. For the first time, people are seeing real financial returns from reforms.”
Consumers across households, businesses, and industries are expected to benefit. While the monthly refund may seem modest, it is a symbolic and practical step towards a consumer-centric and fiscally healthy power sector.
The move also sets a precedent nationally, showing that meaningful reforms in a traditionally loss-making sector can yield direct citizen benefits.