True-up shock: power consumers to pay more from January

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued orders permitting the collection of true-up charges to the tune of Rs 9,412.50 crore from consumers. The additional charges will be reflected in the coming January bill and the total amount will be collected in a period of 24 months. This decision has further fueled discussions about the power tariff in Andhra Pradesh and its impact on consumers.

The distribution companies (DISCOMs) in the State made proposals in May this year seeking permission from (APERC) to collect true-up charges to the tune of Rs 12,844.88 crore for the year 2023-24. The commission, after studying the public opinion and objections raised by stakeholders, has decided to allow distribution companies to collect Rs. 9,412.50 crore, while rejecting the proposals made for the Rs 3432.38-crore expenditure.

To minimise the burden on consumers, the APERC has directed the distribution companies to collect the charges in 24 months. True-up charge of 40 paise per unit will be collected from consumers.

The power tariff was increased in Andhra Pradesh earlier in 2022. The Left parties and other organisations have been up in arms against the government ever since the DISCOMs made the proposals for the collection of true-up charges.

On the other hand, the hike in power tariff has triggered a blame game between the ruling TDP and the opposition YSRCP. When the proposal was made recently, former Chief Minister Y S Jagan Mohan Reddy reminded that the TDP chief promised not to increase the power tariff. “Contrary to the promise, now he is ready to burden the people,” he has pointed out.

Reacting to the remarks, TDP leaders have blamed the previous government for the present situation. They have alleged that the previous YSRCP government had adopted all faulty policies and purchased power at higher rates ignoring its consequences.

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This article is written by Senior Journalist Lakkoju Nagesh Babu