In a decisive consumer-first intervention, the Government of Andhra Pradesh under Chief Minister N Chandrababu Naidu has absorbed nearly Rs 4,500 crore in legacy power liabilities, preventing a sharp electricity tariff hike for households, farmers, and businesses.

The move follows the Andhra Pradesh Electricity Regulatory Commission (APERC) completing the truing-up of the Retail Supply Business for FY 2019-20 to FY 2023-24 - a period marked by deferred costs and postponed decisions under the previous Jagan Mohan Reddy regime.

The action taken by the Naidu government has resulted in legacy dues being cleared while at the same time protecting consumers from any rise in electricity tariff, sources said, adding that Rs 4,497.89 crore true-up has been approved.

None of the dues that the present government has absorbed has been passed on to the consumers, they said.

After detailed regulatory scrutiny, Andhra Pradesh Electricity Regulatory Commission (APERC) approved a total true-up of Rs 4,497.89 crore across the three distribution companies - Rs 1,551.69 crore of Andhra Pradesh Southern Power Distribution Company (APSPDCL), Rs 1,163.05 crore of Andhra Pradesh Central Power Distribution Company (APCPDCL) and Rs 1,783.15 crore of Andhra Pradesh Eastern Power Distribution Company (APEPDCL).

Sources said recognising the severe impact such retrospective charges would have had, the State Government formally committed to paying the entire amount on behalf of the DISCOMs. APERC explicitly recorded this commitment, noting the government's decision was taken "to avoid hardship to end consumers and to honour its promise not to burden the public with higher electricity charges." The approved true-up reflects accumulated gaps in power purchase costs, operational expenses, and carrying charges from FY 2019-20 to FY 2023-24 - liabilities pushed forward by the previous government and left unresolved.

Rather than passing these costs on through higher tariffs, the current administration chose fiscal accountability and public interest. By absorbing the financial hit, the government has effectively delivered a New Year relief package to the people of Andhra Pradesh - locking in tariff stability and shielding consumers from sudden electricity bill shocks. The move strengthens public confidence in the government's pro-people governance and reinforces its clear promise: affordable, predictable power for all. At the same time, the decision reflects a calibrated policy approach - protecting consumers without compromising the financial health of DISCOMs. It also underscores APERC's role as a vigilant regulator, rigorously scrutinising claims while keeping public interest at the centre. Sources said the intervention reinforces the Naidu government's core commitments of no retrospective tariff shocks, stable and predictable power pricing, consumer-first governance and restoring financial discipline in the power sector.

By absorbing nearly Rs 4,500 crore in legacy dues, the government has insulated families, farmers, MSMEs, and industries from sudden bill increases - while resetting the power sector on a transparent, sustainable path. The people of Andhra Pradesh will not pay for the mistakes of the past, sources said. This, they said, is a clean break from defer-and-dump governance - and a clear return to responsibility.